In the framework of the VIII Conference on Banking Law, “Banks in an Age of Fundamental Changes: Aspects of Law,” bankers, regulators and experts discussed how to effectively manage the financial market and not harm consumers.
How should the financial market be regulated to support its development and eliminate unfair practices – these and many other questions were raised by the participants of the “Behavioral Supervision and Intermediary Role of Banks” roundtable.
As part of the discussion, experts noted that today the prohibitive position of regulatory authorities is mainly applied, which eliminates the constructive initiatives of banks and hinders the development of services.
An example is the Marginal Cost of Credit (TCC), which has changed from an informative tool to a restrictive one, above which credit is not allowed.
However, unscrupulous market participants easily circumvented this measure and began to exclude some loan-related services from the VAT.
As Sberbank Vice President Anna Popova pointed out in her speech, instead of lifting the TIC restriction and switching to macroprudential regulation, an irrational norm is often proposed: all services purchased through banking channels, even if they are not related in any way, should be included in the PSK.
“What kind of indicator will that be, the full cost of what? Definitely not a loan. Why is this done? Because it has been proposed to oppose the imposition of additional services in this way. However, there are more appropriate means to combat imposition: information and a period of calm,” Popova added.
As a result of the discussion, financial market participants concluded that the imposition of legal restrictions can only be justified as an exceptional measure, when for some reason neither audits, standards of conduct, or other soft measures have worked.
According to Anna Popova, an effective behavioral approach is a balance between supervision, promoting the development of financial markets, fair and good practices, and establishing adequate regulatory requirements for interaction with and for the benefit of the consumer.