Financial Institutions Project

closed

The development of a market-oriented financial system in Russia is a complex process which will require sustained efforts over many years and will need to be supported by a series of Bank operations. The project is designed to institutionalize some of the key elements of financial infrastructure and to strengthen the financial institutions which are perceived to have the greatest prospects for participating effectively in a private market economy. The ultimate objectives of the program are to increase the quantity and improve the quality of banking services, promote banking stability, and contribute to a more efficient mobilization of financial resources and allocation of bank credit. The project consists of four components: 1) a commercial banking component, consisting of institutional strengthening programs and systems modernization and automation programs for private commercial banks; 2) a bank regulation and supervision component, consisting primarily of the development of on-site supervisory capabilities and the provision of legal assistance for the Central Bank of Russia; 3) a bank accounting component, which will support the modernization of accounting standards and practices; and 4) a Project Implementation Unit (PIU) component which will contibute to the establishment and early stages of operation of the PIU.