LONDON – Under the auspices of the EU-Russia Co-operation Accord signed in 1994, the Bank of Russia (BOR) and European Central Bank (ECB) have announced a new initiative to further co-operation on banking supervision and improve internal auditing at the Russian end.
The initiative will last for three years and the EU has set aside €3 million in funds for it, according to a spokesperson at the Bank of Russia. "It is aimed at improving systemic acceptance of Basel II norms within the Russian banking system. This would bring about consistency of capital reserve rules between both central banks and enhance better risk-management practices,” he said.
In its response, a statement from the ECB said: "The banking supervision component of this programme will aim at enhancing the institutional capacity of the Bank of Russia to maintain the stability of the Russian banking system."
"The internal audit component of the programme will aim to support the Bank of Russia's risk-based internal audit function, through training by and consultations with the experts of the ‘Eurosystem’ of Eurozone central bank,” it said.