Elvira Nabiullina, Governor of the Bank of Russia, has stated that she is inviting bankers to discuss the creation of self-regulated organizations (SROs), Interfax reports. "We are at a junction that we also want to discuss with the market, which, in our view, we must pass. We can think about associations who could begin to partially perform the function of self-regulating organizations to set standards, but the Bank of Russia will control those standards. Or, alternatively, we should create a full-fledged self-regulation institution in the banking sector," Interfax quotes Ms. Nabiullina.
If a decision is made to create full-fledged SROs in the banking sector, they will work out standards and monitor their compliance, she added. The model of the banking associations does not suggest that they can influence the behavior of their members, much less punish them for unfair practices, said Ms. Nabiullina. She concluded that the banking sector was approaching "the need for change in legislation that would allow control over the integrity of sales of both banking and non-bank products through self-regulation."
Since the beginning of 2016, Federal Law No. 223–FZ "On self-regulated organizations in the financial market" has come into force in Russia. Various financial institutions have their own SROs: consumer cooperatives, microfinance organizations, insurance companies, forex dealers, and others.