Expert review for Forbes by Vladimir Tatarchuk, Board Chairman and Chief Managing Partner at Proxima Capital Group
25 December 2017
To save or to let drown: the Central Bank’s difficult choice
After the emergency financial rehabilitation of two major banks – B&N and Otkritie – it’s difficult to talk about the predominance of market-based approaches and principles in the economy
The new rescue mechanism will perhaps become the rake the Central Bank will step on as it frees negligent owners from being held responsible for their mistakes.
Unfortunately, today, the dominant stereotype in the public consciousness is that a good bank or banker is the one who takes the side of troubled borrowers, supports them with new loans and allows them to postpone the fulfilment of prior obligations. Meanwhile, a true bank is an institution which, first and foremost, is responsible vis a vis those who entrusted it with their money, and more and more shifts its primary earnings away from risky loan products towards a variety of value-added services.