Finance and Credit

Some Aspects of Protecting the Customers of Credit Institutions Subject to Dissolution

Vol. 24, Iss. 2, FEBRUARY 2018

Received: 7 December 2017

Received in revised form: 21 December 2017

Accepted: 10 January 2018

Available online: 1 March 2018

Subject Heading: Banking

JEL Classification: 

Pages: 351–361

Zagidullin R.I. Ministry of Justice of Republic of Tatarstan, Kazan, Republic of Tatarstan, Russian Federation

ORCID id: not available

Shavaleeva Ch.M. Institute of Management, Economics and Finance of Kazan (Volga Region) Federal University, Kazan, Republic of Tatarstan, Russian Federation

ORCID id: 0000-0002-5407-3219

Importance The article investigates prospects for improving the procedure for liquidation of credit institutions to cancel out the adverse effects of dissolution and protect customer interests.
Objectives The aim of the study is to unveil problems of customers of credit institutions to be dissolved and formulate solutions.
Methods We review problems related to statutory regulation of procedure for credit institutions' dissolution in Russia through the analysis of applicable Russian laws and the practice of credit institutions' liquidation in the Republic of Tatarstan in 2017.
Results The analysis shows that small and medium-sized businesses having accounts with banks with withdrawn license are very much vulnerable, the procedure for getting compensation through the deposit insurance system is unregulated, the financial literacy of Russian citizens is rather low.
Conclusions To protect the interests of customers of credit institutions with revoked license, it is necessary to amend the current laws regulating the procedure for deposit insurance payment. Furthermore, it is critical to increase financial awareness in Russia.

Keywords: credit institution, liquidation, dissolution, deposit insurance

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 24, Iss. 2
February 2018