The Bank of Russia and the Ministry of Finance of the Russian Federation have announced the establishment of a new Banking Standards Committee. This initiative aims to create a platform for dialogue and collaboration between regulators and banking businesses.
The inaugural meeting of the committee is scheduled for the end of May. Key topics on the agenda include mortgage lending standards and organizing supervision over compliance with these standards.
According to officials, "Standards are a promising form of soft regulation." The collaborative effort on these documents will enable the Bank of Russia to communicate its views on optimal and suboptimal practices to market participants. Through this dialogue, banks can find balanced solutions that consider consumer interests while preventing systemic risks.
Regulators have approved committee members, with representatives from banks and banking associations making up two-thirds of its composition. As suggested by market participants, most members are banks with a high proportion of retail transactions.