The Central Bank of the Russian Federation is developing a self-regulatory concept for the local banking market in order to protect local customers from unfair banking practices, Russian newspaper Izvestia reported Dec. 14.
If the concept is approved and implemented, one or several self-regulatory organizations would appear on the market, and banks would be required to join them.
The SROs would be responsible for developing mandatory standards that their members would have to adhere to when dealing with their clients. It is expected that the standards could help eliminate various unfair activities currently applied by local lenders, such as forcing clients to take an insurance product when applying for a loan.
The central bank believes that self-regulatory standards would improve the quality of services provided by banks and the level of customer satisfaction, the regulator's representative told the newspaper.