Order of the RF FAS of 28 June 2012 No. 433 approves the “Procedure for analysing the state of competition for the purpose of establishing the dominant position of a credit institution”

25.09.2012

Order of the RF FAS of 28 June 2012 No. 433 (the Order) introduces special rules for analysing the state of competition for the purpose of establishing the dominant position of a credit institution.

When analysing the state of competition for the purpose of establishing the dominant position of a credit institution, the RF FAS is guided by the “Procedure for analysing the state of competition on the commodity market”, approved by Order of the RF FAS of 28 April 2010 No. 220 in consideration of the special requirements determined in the Order. In particular, the Order applies to analysis of the market connected exclusively with performance of banking operations (services) by a credit institution.

For the purposes of applying the Order, a banking service is defined as “a banking operation (aggregate of banking operations) booked, in accordance with the rules for financial accounting in credit institutions, on a separate account or group of accounts grouped by economic homogeneity”.

In practice, credit institutions often render clients not only banking services but also other ones. The Order stipulates that, when a credit institution performs other operations (such as provision of consulting and auditing services), its dominant position on the market for such services is established irrespective of the specifics established by the Order.

For analysis purposes, the source information consists in that received by the antitrust authority from the Central Bank of the Russian Federation. The list of such information is established by interdepartmental agreement between the RF FAS and the Central Bank, in consideration of the requirements for banking secrecy (i.e., within the scope of the credit institution’s reporting to the Central Bank of Russia).

An open list has been compiled of features of a banking service determining the choice of buyer, including, among other things:

  • the timeframe for provision of the banking service, the territory on which and the sum in which the service is rendered;
  • the conditions and method for rendering the banking service, including the requirements made on the consumer of the service and the documents required for receiving the service;
  • the business reputation of the credit institution.

Order of the RF FAS of 28 June 2012 No. 433 came into effect on 05 August 2012 (10 days after its official publication).

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