Central Bank to simplify banking services 

On November 20-21 this year, a discussion was held at the Central Bank on optimizing processes for rendering a number of banking services.

In accordance with the new version of the adopted Law “On banks and banking activities”, the Central Bank made a decision on a phased transition to risk-based supervision of banks. In order to improve and increase the efficiency of banks, the CB will gradually move away from the practice of micro-regulation of banking activities by introducing optimized procedures for the implementation of certain types of banking operations (credit, cash and deposit) and reviewing the procedure for calculating a number of prudential ratios.

In particular, a legal framework is being created to stimulate banks to invest in the development of modern IT technologies, expanding their capabilities for automating business processes and allowing an increase in the range of banking services provided.

As for the granting loans, the practice of regulating lending processes with the establishment of certain requirements for risk management is canceled.

A simplified procedure for conducting deposit operations is also being introduced for banks that have established a risk prevention system. Along with this, a number of prudential standards are brought into line with international standards and recommendations of Basel 3.

The functionality of front office workers is expanding by providing the ability to render all types of basic banking services with one employee.

The proposed measures will serve to reduce the time required, simplify excessive paperwork and expand the availability of banking services.
 
The Central Bank will continue to study international experience and best international practices, and also expresses its willingness to consider proposals from commercial banks to further simplify banking services.

At the same time, the Central Bank, moving away from micro-regulation, will strengthen the regulatory framework for regulating relations between banks and customers in order to protect the rights and legitimate interests of consumers.