The Central Bank wants to lift the ban on opening branches of foreign banks

The Central Bank proposed to allow foreign banks to open Russian branches. Such a measure was included in the list of initiatives for the development of the financial market, a joint presentation of the regulator and the Ministry of Finance was presented at a strategic session in the government (Vedomosti has the document). But only organizations from friendly countries will be able to open their branches, the presentation says.

The concept of “branch of a foreign bank” was excluded from the laws “On banks and banking activities”, “On the Central Bank of the Russian Federation (Bank of Russia)”, “On currency regulation and currency control” by decree No. 29-FZ “On amendments to certain Legislative Acts of the Russian Federation”, signed by the President of Russia in March 2013. This meant a virtual ban on opening branches of foreign banks in Russia.