CHENGDU /China/ July 25. /TASS/. Russia’s Central Bank has prepared a concept of the Fund for banking sector consolidation, the government will discuss the bill, head of the regulator Elvira Nabiullina told reporters.

"We have prepared a concept of creating such a fund (Fund for the consolidation of the banking sector - TASS.). It will be discussed by the government. In accordance with international experience, we proposed that when public funds are allocated for the financial recovery, the liabilities of the given bank to former owners are to be fully written off," she said.

"Many banks expressed their dissatisfaction with the fact that either the laws or the government with its normative acts set limits on working with public money, social funds, and so on, explaining it with the fact that a large part of the banks is not transparent to them. Especially in the environment, where we do not disclose data on the implementation of regulations, sanctions, etc. I think it would be reasonable that if there is such a special regime of operation and special restrictions on work with some deposits, in this case the banks should give their consent for disclosure of information to such creditors about supervisory activities. I think this can also be discussed," she said.

Profit of Russian banks in 2016 may exceed 500 bln rubles ($7.7 bln), she added.

"At the beginning of the year we estimated it at 500 bln (rubles) for this year. We thought that we took a rather conservative approach, but market participants, in my opinion, largely considered this assessment to be bold enough. But now the first six months show that 500 billion is rather a conservative estimate. Let's see, maybe the profit will be bigger. I would not like to name the exact figure, but we see the resumption of profits," she said.

Nabiullina did not attribute the current recovery of the banking sector to the fact that they had created insufficient reserves.

"Indeed, in the first half of the year, the banks created one and a half times less reserves than last year, but that does not mean insufficient reserves. In the first half of last year, banks created reserves for the assets, which revealed poor quality. But we see that in the course of the year they conducted a rather conservative policy in terms of building up loans. They had a hardline approach to the borrowers. So we believe that now these profits were not due to the fact that they created insufficient reserves for some of their assets," the head of the Central Bank said.

The head of Russia’s Central Bank also said in the future the disclosure of the information may become one of the criteria to select banks for working with state funds.

"I would even support expansion of the list of banks that have access to such funds. If banks give their permission for the disclosure of information that some supervisory measures are applied to them by the regulator, creditors did not fear that there are some serious violations. But the topic needs to be discussed," Nabiullina said.