Chairman of the Russian Central Bank Sergei Ignatyev has announced that the country's banking system has completely recovered from the aftereffects of the 1998 crisis.
While appearing at a conference, "Russia: Reforms and Market Growth," he said that the banking system had recovered quite quickly and that GDP indices were continuing to grow.
According to Ignatyev's information, the aggregate capital of banks stood at about 5% of the nation's GDP at the start of 2002. Loans to the real sector of the economy also increased.
Sergei Ignatyev said that the Central Bank was focusing on enhancing its supervisory role and liberalising currency regulation and control.
According to him, intensive work is currently being carried out on a law to guarantee bank deposits. The main aim of the law would be to encourage competition on the banking market that would then lead to an increase in ordinary people making deposits.
Ignatyev also pointed out that the Central Bank had a considerable advantage in this area, as it has the necessary state guarantees that could not be taken away.