Operation of agricultural consumer credit cooperatives to be governed by core standards

As set forth by the draft ordinance of the regulator, agricultural consumer credit cooperatives (ACCCs) shall observe core standards elaborated by the self-regulatory organisations (SROs) of ACCCs in line with Bank of Russia requirements.

The document presents a list of core standards, which are binding for all ACCCs irrespective of their affiliation with SROs. The list comprises standards for corporate governance, for ACCC consumers’ rights and interests protection, for transactions in financial markets and for risk management.

The regulator views the following ACCC operations as subject to standardisation: the raising of funds of credit cooperative members or associated credit cooperatives; the issuance of loans to be repaid from maternity (family) capital; the issuance of credit cooperative sureties on the obligations of credit cooperative members; the placement of the credit cooperative’s reserve fund; the performance of operations as an insurance agent; the performance of operations as a bank payment agent (subagent); and the performance of operations as a payment agent (subagent).

The standards elaborated by SROs shall be further agreed upon by the standards committee and then approved by the Bank of Russia.

Suggestions and comments regarding the document will be accepted from 28 May through 11 June 2019.