Activity of corporate organizations of the banking community of Russia in 1990-2015

Formation of the modern banking system in the present-day Russia, showing all the world-class quality features, is accompanied by formation of civil institutes, which activity is carried out within the framework of the globalizing financial sphere. The banking corporate business culture, which suggests establishment of the new business ethics, implementation of the state of the art banking IT, strengthening of the legal framework, preparation of the highly qualified specialists, has become an important factor of the innovative development of Russian business and economics.

In 1994 there were 2500 banks in Russia, most just beginning to develop their functionality. By the beginning of 2000s, Russian banking system held the third place in the world by the amount banking institutions, following the USA and Germany. A key aspect of its establishment and current activity was development of corporate organizations.

Formation of the banking structures of the new type, focused on financial activity under conditions of liberal market economy is already happening in the late period of the Soviet system, when the ideas of the "perestroika" in the business sphere and social organization begin to dominate, changing the very structure of the national economics.

In August 1989 the Moscow Banking Union was formed in the USSR. It became one of the first corporate public organizations of the Russian banking business. In 1990 the national financial community founded the Russian Banking Union with headquarters in Perm. On March 27th-28th, 1991 Moscow held the Congress of commercial and cooperative banks of the RSFSR, organized by the initiative of the Moscow Banking Union and the Leningrad Banks Association, which decreed to transform the Russian Banking Union into a new structure - the Association of Russian Banks (ARB). At the time of its foundation, the ARB united 65 commercial and cooperative banks, and the leading audit firms, such as Interbank Financial House, Moscow Audit Chamber, International Taxation Center, etc. were also among its members. Foreign banks were also members of the ARB, such as ABN AMRO Bank, Societe Generale - Vostok, Bank Austria, Chase Manhattan International, Bank of China, etc. In 1997 ARB became member of the European Banking Federation and in 2010 - associated member of the International Banking Federation, which includes the leading banking associations of the European Union, USA, Canada, Australia, India, China, South Korea, Japan and SAR.

ARB played a particularly significant role in formation of the new Russian business world, as an important system generating factor, being the leading institutional basis of the national banking community. The Association of Russian Banks accounted among its members over 75% of the banking institutions, which represented over 90% of the joint capital of the then active financial organizations, as well as approximately 90% of all assets of the national banking system. Currently, ARB has 713 members, including 507 credit organizations. In the total, with consideration of the associated members, the ARB has 952 members, of which 615 are financial and credit organizations. Since its foundation ARB accumulated considerable financial resources, overall capital being 470 billion rubles.

Thanks to the ARB's consistent activity, the process of institutionalization of the national financial sector has been intensified: thus, the Association of Russian Banks acted as founder or co-founder of the Moscow Interbank Currency Exchange (MICEX), the National Association of the Mortgage Market Participants, the Moscow Clearing Center and a number of other banking and financial structures. In March 2005, by initiative of the Association of Russian Banks and on the basis of the Federal Law "On credit histories", there was founded the Open joint-stock company National Bureau of Credit Histories (OJSC NBKI), which is currently the largest on Russia's financial market.

By initiative of the ARB and its President G. A. Tosunyan, there was developed and adopted the Code of ethical banking principles.

The Supreme management body of the Association of Russian Banks is the Congress. During the congress sessions of the ARB the problems and perspectives of development of the Russian banking sector is discussed. Thus, the XVI Congress of the ARB adopted the "Strategy for improvement of the competitive ability of the national banking system". On April 5th, 2006, at the XVII Congress of the Association of Russian Banks, there was adopted the perspective Program "Russia's National Banking System 2010-2020".

The topic of the 26th Congress of the Association of Russian Banks held in April 2015 was "Anticrisis tactics and strategy: interaction between banks and regulating authorities".

ARB management is constructively cooperating with the Central Bank of Russia, taking part in the meeting with its Chairman, Elvira Nabiullina on a regular basis. On November 7th, 2013, by initiative of the Association of Russian Banks, there was held a meeting of the Bank of Russia's management and heads of banks, where matters concerning regulation of the credit organizations' activity by the Bank of Russia were discussed, in particular, matters concerning enactment of the consumer credit law, application of the Bank of Russia's Regulation №254-P "On the procedure of formation by the credit organizations of reserves for possible losses associated with loans, credits and debts attributed to the same category", the transfer to Basel III and the possible differentiated approach to the contributions made in the deposits insurance system.

Along with the ARB, the Russian banking community also created a number of other corporate organizations.

On December 13th, 1990, heads of 37 commercial banks founded on the basis of the former territorial offices and branches of the Promstroybank USSR and its 13 regional administrations, signed the Foundation agreement of the Russian Association of Joint-stock commercial, industrial and construction banks "Russia" , which, essentially, became the first nationwide banking union. The concept of the Association of banks "Russia" suggested its nationwide status, which was also assisted by the wide geographical spread of the organization's structures.

The August financial crisis (default) in 1998 made a considerable impact on the process of institutionalization and activity of the Association. In 1999 it was renamed into the Association of regional banks of Russia (Association "Russia"). Presently, the Association of regional banks of Russia has over 450 participants, among which there are large system generating credit institutions of national scale, leading banks with foreign participation, small and middle regional banks which carry out their activity all over the Russian Federation territory.

The Association of regional banks expresses the opinion of not only a certain group of financial institutions, but also of a considerable share of the national banking community, and its activity is primarily aimed at development of the whole financial services market. On the XXIII Annual general meeting of members of the Association of regional banks of Russia, there was adopted the "Concept of development of the banking system of Russia till 2020", which is the result of many years of fruitful work of experts, representatives of credit organizations, economics scientists, etc.[3]

By initiative of the Association, there have been founded and actively carry out their activity the International Coordination Council of the banking associations of the CIS countries, the Central and Eastern Europe, the Public Council of Information Policy in the Financial and Banking Sphere of Russia [1].

Russian banking community discusses a wide array of issues concerning strategic development of the banking system and specific business projects in corporate clubs, during regular conferences and forums of international, national and regional scale.

In 2008, by initiative of the ARB, there was founded the National Banking Club , which became one of the leading institutional structures of the Russian banking community, forming the business environment and positive intracorporate situation of the national financial world.

Corporate events, as well as scientific disputes, presentations of perspective financial development projects are held by the Club of heads of banking PR and advertisement services .

Russian specialists in the area of banking management and technologies actively participate in the International banking club "Analytics without borders", etc..

The current development problems of the modern banking system of Russia are considered during meetings of the All-Russian Banking Council .

In October 2002, in Moscow, Russian banking unions, represented by their heads, have signed the "General agreement on consolidation of banking unions for development and strengthening of the banking system", in which, inter alia, the strategic goal was formulated: formation in Russia of a stable, sustainably developing banking system, trusted by the Russian citizens and the state, as well as the world financial community. The General agreement also specifically pointed out that an efficiently operating banking system is a vital attribute of the national sovereignty of Russia, and, at the same time, a factor of further modernization development of the market economy.

In September 2013, in Moscow, by initiative of a number of Russian and foreign banking structures, in accordance with the objectives and tasks of the Shanghai Cooperation Organization (SCO), there was founded the Non-commercial partnership "Financial and banking association of the Shanghai Cooperation member states" (NP "FBA SUSSh"), which founding members were the Association of regional banks of Russia, the Financial and banking council of the CIS, Association of financiers of Kazakhstan, Association of banks of the Republic of Kazakhstan, Association of banks of the Tajikistan, Financial Corporation MKPP LLC, SCO Business Club.

A special trend of activity of private organizations of the banking world of Russia is ensuring safe activity of the financial structures.

In December 1995, the Association of Russian Banks (ARB) have concluded with the Ministry of Internal Affairs of Russia the "Agreement between the Ministry of Internal Affairs of the Russian Federation and the Association of Russian Banks (ARB) concerning cooperation for interbank safety assurance", in which both parties have agreed to provide mutual assistance in prevention and disclosure of criminal offences concerning financial means of the banks and their clients [2].

In 2009 the first Urals Forum "Information Security of Banks" was held. It was a representative interbank conference which quickly outgrew the regional framework and acquired the status of a central business event for the whole sector of information security and payment systems. In February 2016, in Bashkortostan, with the official support of the Bank of Russia, there was held the regular VIII Urals Forum "Information Security of the Financial Sphere".

The key task of further development and improvement of the national banking system is the matter of training highly qualified bank employees, financial management specialists. Certain Russian banking structures have acquired the experience of financial management abroad, working as part of the management structures of western banks. The Banking Institute founded in 1996 by initiative of the Association of Russian Banks is currently the leading private educational institution in the Russian Federation for further professional training of banking specialists. The Banking Institute is the leading banking educational services provider. It offers over 100 different training programs, seminars, study courses, foreign internship, corporate events on a monthly basis. The Institute is a full member of the European Banking Training Network (EBTN). On the basis of multiple requests from Russian financial organizations, as well as of the ARB proposal, in 2009 the Banking Institute shifted to the system of training availability for all national banks interested in professional growth of their staff.

The banking system of Russia is currently undergoing transformation which strategic purpose is creation of the state of the art financial sphere corresponding with the world class quality standards [4].