DIA Russia Hosts International Seminar
OREANDA-NEWS. The State Corporation “Deposit Insurance Agency” hosted the Seminar of the Europe Regional Committee (ERC) of the International Association of Deposit Insurers (IADI) “Dealing with parties at fault in a bank failure and fraud in deposit insurance” that took place in Moscow.
More than 80 representatives from deposit insurance agencies and international law and consulting firms from 24 countries of Europe, North America, Asia-Pacific and Africa attended the seminar.
Finance Minister of the Russian Federation Anton Siluanov addressed the seminar. In his opening remarks he stressed the importance of international cooperation for improving market discipline in the banking sector, strengthening collaboration between national authorities responsible for maintaining financial stability.
According to Minister, the task of every responsible government is to make the exit from the market of any financial institution less painful and destructive both for the public and the economy. In recent years these issues have been in the focus of attention of G20 leaders and international financial organizations. In particular, they will be discussed in July in Moscow at the regular meeting of G20 countries’ finance ministers and central bank governors as well as at the September G20 Summit in Saint Petersburg.
Anton Siluanov pointed out that this year is the tenth year of the Russian deposit insurance system functioning, and the government intends to sequentially enhance DIA operation including through granting it new functions and powers that are in need for our financial system. "Concentration of functions of providing insurance to customers of all types of financial institutions in the Agency’s hands would be the right step forward", Minister said. He also added that it would be feasible to establish the single resolution authority for problem financial institutions on the basis of the Agency.
DIA General Director Yury Isaev in his welcoming remarks pointed out that the theme of the seminar is of great urgency for many jurisdictions. “The recent financial crisis has led to widening mandates of a number of deposit insurance agencies, and some of them just recently receiver powers and responsibilities related to bank resolution”, he said. Fraudulent schemes in the sphere of deposit insurance as well as bank failures are in common for many countries. That is why today it is very important to share experiences and implement best practices of each other, he stressed.
As part of IADI research activity the special subcommittee was established in 2012 for taking stock of existing approaches and developing guidance for deposit insurers in the area of investigating causes of bank failures, fraud in deposit insurance and imposing legal responsibility on culpable persons. DIA Russia chairs this subcommittee and the seminar participants have discussed the first results of its work.
Chair of the Executive Council and President of IADI Jerzy Pruski in his address to the seminar expressed gratitude to the Russian Deposit Insurance Agency for leading this international research project. In his speech Mr. Pruski stressed that investigation of causes of bank failures should be conducted in close collaboration with the supervisory authorities and law enforcement agencies, and bringing legal actions against those at fault in a bank failure and prosecution of culpable persons needs both well developed and effective legal system and judicial practice.