Procedure for banks to obtain Bank of Russia’s consent when establishing control over other banks simplified
The Bank of Russia has simplified the requirements for the documents that a credit institution must submit to the regulator in order to obtain its consent to the establishment of direct or indirect control over another credit institution.
The Bank of Russia Ordinances amending the procedure for submitting a credit institution’s business plan and the Instruction on obtaining the consent of the regulator to the acquisition of the shares of a financial institution became effective on 17 November.
Instead of a business plan, it is now obligatory to provide data on the evaluation of the transaction’s impact on the future operations and financial stability of the credit institution obtaining the Bank of Russia’s consent as well as the credit institution in respect of which control is being established. Therefore, it will no longer be necessary to approve or amend a business plan and hold a general meeting of the shareholders/members of a credit institution for this purpose.