AGL 40.21 Increased By ▲ 0.18 (0.45%)
AIRLINK 127.64 Decreased By ▼ -0.06 (-0.05%)
BOP 6.67 Increased By ▲ 0.06 (0.91%)
CNERGY 4.45 Decreased By ▼ -0.15 (-3.26%)
DCL 8.73 Decreased By ▼ -0.06 (-0.68%)
DFML 41.16 Decreased By ▼ -0.42 (-1.01%)
DGKC 86.11 Increased By ▲ 0.32 (0.37%)
FCCL 32.56 Increased By ▲ 0.07 (0.22%)
FFBL 64.38 Increased By ▲ 0.35 (0.55%)
FFL 11.61 Increased By ▲ 1.06 (10.05%)
HUBC 112.46 Increased By ▲ 1.69 (1.53%)
HUMNL 14.81 Decreased By ▼ -0.26 (-1.73%)
KEL 5.04 Increased By ▲ 0.16 (3.28%)
KOSM 7.36 Decreased By ▼ -0.09 (-1.21%)
MLCF 40.33 Decreased By ▼ -0.19 (-0.47%)
NBP 61.08 Increased By ▲ 0.03 (0.05%)
OGDC 194.18 Decreased By ▼ -0.69 (-0.35%)
PAEL 26.91 Decreased By ▼ -0.60 (-2.18%)
PIBTL 7.28 Decreased By ▼ -0.53 (-6.79%)
PPL 152.68 Increased By ▲ 0.15 (0.1%)
PRL 26.22 Decreased By ▼ -0.36 (-1.35%)
PTC 16.14 Decreased By ▼ -0.12 (-0.74%)
SEARL 85.70 Increased By ▲ 1.56 (1.85%)
TELE 7.67 Decreased By ▼ -0.29 (-3.64%)
TOMCL 36.47 Decreased By ▼ -0.13 (-0.36%)
TPLP 8.79 Increased By ▲ 0.13 (1.5%)
TREET 16.84 Decreased By ▼ -0.82 (-4.64%)
TRG 62.74 Increased By ▲ 4.12 (7.03%)
UNITY 28.20 Increased By ▲ 1.34 (4.99%)
WTL 1.34 Decreased By ▼ -0.04 (-2.9%)
BR100 10,086 Increased By 85.5 (0.85%)
BR30 31,170 Increased By 168.1 (0.54%)
KSE100 94,764 Increased By 571.8 (0.61%)
KSE30 29,410 Increased By 209 (0.72%)

Russia's parliament, deliberating after a week of turmoil in the banking system, on Saturday approved measures aimed at protecting depositors from banks subject to bankruptcy.
The State Duma lower house, proceeding with three readings in rapid succession, overwhelmingly adopted a bill guaranteeing deposits in banks not subject to a system of obligatory insurance. A total of 403 deputies voted in favour with three abstentions.
Russian banks were buffeted by a week of uncertainties and rumours, prompting a rush on deposits and long queues outside branches.
Finance Minister Alexei Kudrin denied at the end of the week the banking system was in crisis and echoed the central bank's call for calm. Markets quietened after state-owned Vneshtorgbank, Russia's second biggest bank, agreed to buy a large stake in Guta Bank, which halted operations for a time.
The new system will apply to depositors in two banks which failed earlier this year - Sodbiznesbank and Credittrust.
"Approval of this law will ensure that all depositors in banks whose licences were withdrawn recently have the chance to claim their deposits," said Vyacheslav Reznik, head of the Duma's banking committee.
The law, to take effect in a month, will apply to all banks declared bankrupt if they are not part of the insurance scheme - provided their licences were withdrawn after the adoption in February 2003 of the law on insurance deposits.
Payment is to be effected in a period of one to six months, with 100 percent coverage of deposits up to a maximum of 100,000 roubles (around $3,400).
Exceptions apply, notably, in cases of deposits placed on behalf of enterprises without creation of a legal entity.
The Duma also approved a law regulating the level of interest rates on accounts in banks in difficulty and subject to central bank restrictions. Minimums set would guarantee depositors at least some income, while maximums would protect against illicit pyramid schemes.
"The limits on maximums are not a particularly tough measure," said deputy central bank chairman Dmitry Tulin.
"If a bank is seen to be offering rates two or three times higher than market rates, it will be a sign that it is not a bank, but rather a financial pyramid".

Copyright Reuters, 2004

Comments

Comments are closed.