Russia to Merge Central Bank, Markets Service in Two Years

MOSCOW, December 14 (RIA Novosti) – The Russian government has decided to integrate its financial markets regulator (FSFR) and the Central Bank within 18 months to two years, Finance Minister Anton Siluanov said on Friday.

“The government has had discussions on creation of a unified mega-regulator. We have agreed on a plan of action: in the first half of next year, legislation will be prepared, further clarifying the role of the Central Bank and financial regulation, and then gradually over a year and a half, two years, the FSFR’s functions will be integrated with the Bank of Russia,” Siluanov said.

The Central Bank will in the end have a special committee for the new regulator, but initially, in the first half of 2013, a separate division of the FSFR will be set up within the Central Bank, headed by the bank’s deputy head.

First Deputy Prime Minister Igor Shuvalov instructed the government’s economic ministries and departments in August to submit proposals on improving regulation of the domestic banking system and financial markets.

Former Russian Finance Minister Alexei Kudrin denied on October 9 that he had received an offer to become Russia’s new financial “mega-regulator,” after earlier reports said he had been tipped for the post.

 

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