Legislation in the Banking Sector: a new look

Discussion of the issues of legislative regulation of the banking system of Pridnestrovie by deputies of the Supreme Council coincided with the instability in the foreign exchange markets of Russia, Ukraine and Moldova. This actualized consideration of legislations "On Banks and Banking Activity" and "On the central bank" by parliamentarians in the course of the plenary session this week. The Head of Legal Support of Pridnestrovian Republican Bank Inna Goleva presented it for consideration of lawmakers.

According to Inna Goleva, the adoption of two new fundamental laws governing the activities of the banking sector, due to bringing the legal framework in line with the realities of today. For example, the list of banking operations is obsolete. Recommendations to do it from the Central Bank RF experts, which they have repeatedly appealed to the colleagues from the Pridnestrovian central bank is an important argument in favor of fundamental reform of the banking legislation of the Republic.

Therefore, the legislations presented by the President, developed under the harmonization of Pridnestrovian legislation with Russian, however, the peculiarities of our country into account, the recommendations of Russian bankers taken as much as possible into consideration. Conceptual apparatus, objectives, functions and powers of the central bank (they expanded), the regulation of credit institutions to protect the rights and interests of clients and depositors, as well as measures to strengthen confidence in the banking sector as a whole and to attract investments in the banking sector of the republic is significantly updated in the documents. The law-in-draft "On Banks and Banking Activity" and "On the Central Bank" also sets out the legal, financial and organizational framework for the bimodal banking system, the relationship between the central bank and credit institutions, public authorities.

Representatives of the legislative branch of government are interested what is fundamentally new in the legal framework with the adoption of the aforementioned legislations. As it turned out, innovations relate to a single payment system, credit histories, deposit insurance in the banking institutions of the republic. Article 4 of the law-in-draft "On the Central Bank" is especially emphasized that getting profit by PRB is though one of the most important tasks, but not decisive. In this regard, it should be noted that the exemption of certain share of the profits of the main bank of the country to the state budget has always been a kind of "safety cushion". The law-in-draft declares the task of maintaining the stability of the monetary system as the main.

Some suggestions for making legislative innovations actually leveling the role of the Supreme Council in the implementation of monetary policy could not leave indifferent the representatives of the deputies. This, in particular, that in accordance with the submitted law-in-draft the parliament now will not approve the estimates of income and expenditure of the PRB, two people instead of three, as it is now are proposed to be delegated to its Banking Council from the Supreme Council. The proposed procedure for the approval of the 1^st Deputy Chairman of the Pridnestrovian Republican Bank, at which lawmakers will not have relation to this procedure in any way raises questions.

Assuming that the issues raised during the discussion topics are of great importance for both credit and financial system both the economy and the state as a whole, the Supreme Council decided to postpone consideration of legislations "On Banks and Banking Activity" and "On the Central Bank" at the beginning of next year.