The Central Bank decided to finish the cleansing of the financial market in the coming months

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According to first Deputy Chairman of the regulator Sergey Shvetsov, a large-scale cleanup of the segment of microfinance institutions, insurance companies and pension funds will be completed in the coming months

“Megazadachey” the Bank of Russia is the early completion of the cleaning process of the financial market from unfair and “weak players”, said first Deputy Chairman of Bank of Russia Sergey Shvetsov at the XV national conference on microfinance and financial inclusion, the correspondent of RBC.

According to Shvetsova, mainly the clearing of the sector of microfinance institutions (MFIs), insurance companies and private pension funds (NPF) will be completed in the coming months. “The cleaning market is a step towards fair competition and reliability of the market. For the second half of 2017 we will enter with a clear signal to the financial market and our consumers that the Bank of Russia has finished the cleaning sector microfinance institutions. Further, as I said, and insurance companies, and pension funds from weak players,” — said Shvetsov.

Shvetsov noted that the license will be revoked and on, but this process will not be massive. According to Shvetsova, the second half of 2017 revocation of licenses will have “character cleaning”, and will be conducted in connection with the current supervision based on submitted financial institutions reporting. Medvedev has reminded that since 2013 the regulator revoked the licenses of hundreds of banks, pension funds and insurance companies and excluded from the registry are many MFIs and credit consumer cooperatives. According to Shvetsova, this was necessary to ensure competition and enhance market stability.

“Unfair player initially has a competitive advantage because it does not burden itself with compliance with the rules of the game, the availability of capital. But if there is no capital, there is no need to get the income, you can apply other practices out of the market bona fide players,” — said Shvetsov.

At the beginning of 2016, the first Deputy Chairman of Bank of Russia Alexey Simanovsky said that the main work on clearing the banking sector should be completed by 2018. Earlier, the head of the Central Bank Elvira Nabiullina said that the ongoing withdrawal of licences should not be called “cleansing.” “It is rather a recovery of the banking sector, is to get rid of the weak players,” she explained.

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