Over thirty heads of the regional banks visited this seminar. The basic goal of the seminar was to present the basics of corporate management and the IFC general principles when selecting investment projects. The participants of the seminar were addressed by V.V.Vinogradov, the head of the Internal Risk Methodology Division of the Banking Regulation and Supervision Department of Central Bank RF, and by A.A.Khandruev, First Vice-President of the Regional Banks Association. They highlighted the situation in corporate management in the Russian banks and emphasized the necessity of continuous implementation of reforms in the banking sector.

A.V.Dolgopolov, Deputy Chairman of the Board Vozrozhdeniye spoke about his experience in developing the structure of corporate management. Over the passed year, Bank Vozrozhdeniye with the IFC support initiated a number of events in order to improve the internal system of corporate management. As Patrick Luternauer, Head of the IFC project "Corporate management in the Russian banking sector" noted:

"Our cooperation with Vozrozhdeniye Bank proves, that improvement of corporate management practices can be possible if top management and supervisory council work jointly in order to introduce all necessary changes. I appreciate highly Vozrozhdeniye for the work done and for readiness to share their experience. I hope, other banks will also be able to make similar steps aimed at upgrading reliability and importance of their companies."

For reference

International Financial Corporation IFC is an investment subsidiary of the World Bank Group. The IFC mission (https://www.ifc.org/) is to promote steady growth of investments in private sector of the countries with transitional economy, to assist in lowering the poverty level and upgrading living standards in these countries. IFC is involved in funding investments in private sector of the countries with transitional economy, capital borrowing on the international financial markets, also the Company assists their customers in improving their social and natural environment, as well as provides technical assistance and consults the Government and business circles. Since its inception in 1956, IFC has invested over USD 44 billion worth its own capital and syndicated USD 23 billion in 3,143 enterprises in 140 countries all over the world. At the end of the last year, the IFC investment portfolio totaled USD 17.9 billion, another USD 5.5 billion refers to the participants of syndicated loans.

Russia entered IFC in 1993. Since that time and until the year 2004, IFC invested USD 1.8 billion including USD 210 ml worth of syndicated loans aimed at funding 91 projects in various sectors of the Russian economy. They cover banking, leasing, residential construction, infrastructure, mining, agro-industrial and pulp and paper industries, construction materials manufacturing, gas and oil industry, telecommunications, information technologies, retail trade and healthcare.

Technical assistance programs are the integral part of the IFC activities in Russia. IFC provides technical assistance to the Russian companies to upgrade their production and managerial efficiency, and helps them to establish relations with the major enterprises as their providers. IFC brings international experience in the practices of Russian banks and leasing companies, and consults them on corporate management, ecological and social issues in order to make them more attractive for investors. IFC also cooperates with representatives of the government on the issues of improving business environment.

IFC project "Corporate management in the Russian banking sector" is aimed at solving of three principle tasks:

1. Assistance in upgrading the level of corporate management in the Russian banks and their client companies.

2. Cooperation with the government authorities on the issues related to introduction of changes in legislation and reforming the system of regulation in the sphere of corporate management in the banking sector.

3. Support of non-government institutions (banking associations) and mass media in the matter of dissemination of the valuable experience in corporate management among the banks and attraction of public attention to these issues.

Russian banks manifesting their intention to improve their practices of corporate management will be able to take part in the program of complex analysis of the current banking system. By the results of the analysis the experts of the project will work out the exact recommendations on the further upgrading of the Bank's corporate management.

The project also cooperates with non-government private institutions on the issues of corporate management and self-regulation. Apart from that, the project would welcome reforms in the banking sector, also it is open for cooperaton with legislative and executive bodies on the issues of developing new laws and regulatory acts, and so contributing to the dialogue between the government and private sector.