Source Pravda.Ru

Central Bank Introduces Concept Of Banking Reforms To Government

The Central Bank has introduced the amended concept of banking reforms in Russia to the government, Senior Deputy Chairman of the Central Bank Tatyana Paramonova announced at a meeting with journalists today. She noted that the only item of the concept that the government and the bank were arguing about was the minimal volume of capital. The final concept stipulates that licenses of banks will be withdrawn in the event the volume of their capital assets is less than 5 million euros and the rate of capital sufficiency is less than 10 per cent. The Central Bank's official stressed that the introduction of a new criterion, the capital sufficiency, was aimed at the development of the whole economy but not separate banks. Paramonova also announced that the Central Bank introduced the main directions of the monetary policies for 2002 to the State Duma. The Central Bank did not reconsider inflation forecasts for 2002 but changed its forecasts concerning the money supply next year. It is expected to increase about 22 or 28 per cent instead of 24-28 per cent as stipulated in the previous concept.

Representatives of the North Korean administration issued a statement saying that the United States and its allies have lost the "political and military confrontation" to the DPRK

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