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Russia Central Bank cast in regulator role
July 26, 2013, 8:23 am

[Photo: the Presidential Press and Information Office]

Russian President Vladimir Putin signed the decree earlier this week [PPIO]

Russia has terminated the Federal Service for Financial Markets and allocated its responsibilities to the Central Bank, a change that will take effect in September.

The government’s legal information website published a notice on Thursday, announcing a “mega-regulator” role for the Central Bank.

The services will now transfer the task of ensuring compliance with Russian legislation to prevent insider trading and market manipulation to the Central Bank.

Russian President Vladimir Putin signed the decree earlier this week, which will see the Central Bank monitor securities, insurance, microfinance and pension investment, as well as maintaining its normal role in the banking sector.

Russia’s Federal Service for Financial Markets had been responsible for monitoring and regulating insurance, credit cooperation and microfinance, commodity markets, exchange intermediaries and brokers.

Meanwhile, GDP growth slowed to 1.7 per cent in the first half of 2013, down from 3.4 per cent last year, according to Russia’s Economy Ministry estimates.

Despite slowing growth, the Russian central bank has left its main lending rates unchanged for the last ten months.

President Putin’s economic aide Elvira Nabiullina was appointed to head the central bank last month.

“The monetary policy should fit the situation in the economy. And indeed, the key task here is to continue the policy aimed at the lowering of inflation,” Nabiullina said on Wednesday.

Source: Agencies

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