Features of regulating credit institutions: Mechanisms and technologies

Abstract

The study was aimed at introducing to the executives of banks and other credit institutions the shared technology and the patterns of bringing the persons controlling the credit institution to subsidiary liability. For achieving these goals, the authors analyzed the cases of bankruptcy of banks in the Russian Federation, in particular, the rules of procedure for taking interim measures if the persons controlling a credit institution are brought to subsidiary liability. In this publication, the judicial practice has been reviewed for the past two years since the entry into force of legislative changes. Practical advice is given, along with routines of the applicants` rights protection in such cases. All of this will not only improve the efficiency of bankruptcy procedures of a bank but will also develop mechanisms of corporate governance in the banking sector toward increased personal responsibility of management decisions makers and those controlling credit institution. The results have been as follows: the authors highlight the shortcomings of the Russian procedural legislation concerning the interim measures taken by courts in banking bankruptcy cases. The identified problems can be solved by amending the national procedural legislation or by adopting special explanations by the Supreme Court of the Russian Federation.