All change?

摘要

President Vladimir Putin has just sailed through the presidential elections to win a second four-year term of office. He has axed a dozen ministries to create a leaner government machine with which to ram through free-market reform. Getting the diminutive banking system off its knees is high on the list of things to do for the new government, but while action is welcome, progress will be slow and the risks of getting it wrong high. The cornerstone of banking reform is a deposit insurance scheme that was passed by the government in December. It means a complete re-licensing of the banking sector as every bank in Russia that wants to accept retail deposits will have to reapply for its license. Those that don't pass stringent reporting and reserve requirements will be barred from taking deposits and will have their activities limited.