Page 26 - bne_newspaper_September_08_2017

Weekly Lists
September 8, 2017 www.intellinews.com I Page 26
bne:Banker
Russia's CB warns banks as sector clean-up tightens
Kazakh president proposes more central bank control over banking sector
The head of the Central Bank of Russia (CBR) Elvira Nabiullina has warned banks against crediting their owners and reiterated the regulator's strict commitment to the clean-up of the sector, Vedo- mosti daily reported.
Nabiullina "advised" that banks which have built their business model on crediting their owners and shareholders need to "seriously rethink it”.
The statement was a clear threat to Russian bankers, who have routinely been stripping their banks of depositors' money by mak- ing fake loans to themselves. Russia spent some $18bn last year on reimbursing depositors with banks that were typically found to have up to $1bn holes in their balance sheet.
The Kazakh central bank needs to have more control over the coun- try’s banking sector, Kazakh President Nursultan Nazarbayev told
a government meeting on September 4.
Nazarbayev blamed the country’s troubles with bad loans and the subsequent need for the government to buy out bad loans and recapitalise banks on the lack of sufficient control over the banking sector available to the central bank.
“The National Bank does not have such rights today, we must give it [permission] to strictly control each bank,” Nazarbayev said.
Kazakhstan's central bank estimates that the government will provide over KZT500bn (€1.23bn) to support the Central Asian country’s banking system in August and September, Kazakh Deputy National Bank Governor Oleg Smolyakov said on July 11.
The Industrial and Commercial Bank of China (ICBC) opened a rep- resentative office in Mongolia’s capital Ulan Baator on September 5, Xinhua news agency reported.
The opening of the new representative office related to “cooperation in industrial capacity and finance” under China’s One Belt One Road trade infrastructure initiative, for which the two countries signed agreements in May, ICBC president Gu Shu said, according to Xinhua.
Projects under the initiative include an agreement to establish a transit route between China and Russia through Mongolia. The route is meant to launch in 2018.China remains Mongolia's largest trading partner as well as a major investor in the country.
China’s ICBC bank opens representative office in Mongolia