OREANDA-NEWS. May 31, 2010. Andrey Kashevarov, Deputy Head of FAS Russia, made a presentation "Protection of Competition on the Market of Banking Services" at the plenary session of the XIX International Banking Congress in St Petersburg, reported the press-centre of FAS Russia.

Summing up the work of FAS Russia in 2009, Andrey Kashevarov pointed out at a growing number of violations on the market of financial services. Cases initiated for the signs of violating the antimonopoly law on the market of banking services accounted for 17 % of the overall number of cases opened upon violations on financial markets.

Andrey Kashevarov quoted data about execution of determinations on the market of banking services, emphasizing a high percentage of executed determinations - 77.5%, which is more than for financial markets in general.

Among the main violations on the market of banking services Deputy Head of FAS Russia listed the violations related to imposing additional contract conditions, which infringe the interests of economic entities; providing additional paid services in combination with the main service; fixing different rates for the same services; and unreasonable increasing the rates and creating unreasonably favorable conditions for credit organizations by the government bodies.

Next, Andrey Kashevarov discussed draft amendments to the antimonopoly regulation, related to control of the state of competition on financial markets, as well as the problems of developing payment markets and promoting competition on the markets for plastic cards services.

In his presentation Andrey Kashevarov specially covered the issue of the Central Bank of the Russian Federation fixing maximum rates for deposits of physical persons. In 2009 the Bank of Russia sent letters, recommending its regional offices to forward written recommendations about reduction of non-market interest rates to the banks that offered the interest rates on citizens' deposits exceeding 1.5% of the average rate of the ten largest banks.

Due to petitions of credit organizations that were apprehensive about possible unconditional restrictions of interest rates by the regulator, the Federal Antimonopoly Service requested the Central Bank of the Russian Federation to state its position regarding employment of these letters.

At the plenary session Mr. Kashevarov said that the nature of these letters was strictly recommendatory, and the Bank of Russia would directly restrict the rates only as provided for in the legislation.