Sverdlovsk Gubernskiy Bank ‘white-listed’ by Federal Antimonopoly Administration for transparency of consumer loans

31 July 2006 (11:30)

Sverdlovsk Gubernskiy Bank CJSC was ‘white-listed’ by the Federal Antimonopoly Administration for transparency of its consumer loans. According to the Administration, they used the data provided by Regional Russian Banks Association, Russian Banks Association, and a number of other banks; so far, 78 banks have voluntarily disclosed information on loans.

The Administration and the Bank of Russia issued some recommendations on loan transparency in May 2005. The underlying principle is providing the would-be borrowers with truthful information on the terms of receiving, using and paying back a loan in a standardized format that would give the consumers a chance to compare and contrast the terms of different banks and then make the best choice. The idea of a customer’s conscious choice is seen as one of the conditions of fair competition among the banks dealing in consumer loans.

Using these recommendations, a bank will increase its competitiveness, raise transparency, widen the consumers’ vision of its services and build up customer confidence, reports the spokesperson for Sverdlovsk Gubernskiy Bank CJSC.

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