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Central Bank resumes inspections of banks

The Bank of Russia from July 1 to resume inspections of credit institutions, which was suspended in March, follows from the message of the regulator.

CB due to the spread of coronavirus and transition most employees to a remote mode of operation has taken a decision to postpone for a period after July 1, scheduled inspections of banks, and suspended till July 1, preventive activities behavioral supervision. These measures were taken in order to reduce the risk of contamination and not to create additional operational burden on financial institutions.

"Now that banks and the regulator returns to normal operation mode, and, therefore, there is a need to return to standard oversight procedures and processes," explains the General Director of National rating Agency (NRA) Alina Rozentsvet.

According to the Deputy Director of the group ratings of financial institutions of an ACRE Mikhail Polukhin, conduct these audits usually involves active interaction from the check financial institutions, and requires them to divert labor resources to execute requests of the inspection teams. He noted that their renewal is most relevant from the point of view of the scope of the regulatory and Supervisory burden. "Therefore, the abolition of this relief it is logical to implement along with the individual assessment of the capabilities of specific organizations and adapting them for modes of inspections," - said the expert.

In turn, Director - head of Bank ratings Agency NKR Mikhail Doronkin noted that in the audit, some banks may face with the requirements of the regulator dosoznanie reserves due to the ongoing deterioration of loan portfolios.