MOSCOW: A three-tier system of banking regulation in Russia makes possible to maximize satisfaction of demands of banking services consumers in Russia, Chairperson of the Bank of Russia Elvira Nabiullina told TASS in an interview. “A three-tier system is created for the economy to have financial institutions capable of maximizing satisfaction of consumer needs. Regional banks are working with small and medium enterprises locally, know their history and have more opportunities to interact with borrowers on an individual basis. Major banks are often losing in respect of this category clients: by virtue of operating techniques of large banks and scoring models,” Nabiullina said. Identification of several tiers in the banking system is a fairly common approach in the global practice, she added.
Financial rehabilitation of Russian banking sector may take several years more, the Central Bank chief said. “The period of proactive recovery of the banking system will continue for some more time. We hope to reach a situation when there will be very few revocations of licenses annually. However, this will take several years more,” she said.
