Magazine article American Banker

Russia Taps U.S. Experts to Overhaul Funds Transfer System

Magazine article American Banker

Russia Taps U.S. Experts to Overhaul Funds Transfer System

Article excerpt

The Russian Central Bank is calling on American electronic banking expertise to help it improve the way it handles corporate and consumer transactions.

The central bank has enlisted the help of the National Automated Clearing House Association and Clifford L. Brody Associates, the Washington D.C.-based international bank consulting and marketing firm, to help design a replacement for an outdated interbank funds transfer system currently in use.

The new system would let banks in Russia use cost-effective personal computer technology to move customer funds from bank to bank. The interbank payment system will be based on the automated clearing house systems employed by major industrialized countries, according to officials involved in the project.

Broad Support for Action

Despite recent political and economic instability, Russian officials said the decision is evidence that a strong political consensus exists among government leaders on the need to shore up the nation's highly inefficient banking system.

They also said the development of the new system is a prerequisite to attracting more foreign investment.

"The outcome of the work is extremely important to us, and we hope to start the process soon," a spokesperson for Russia's Department of Foreign Relations said in a telephone interview from Moscow.

Operational Guidelines

Working alongside Russian banking experts, the consortium will develop actual policies, standards, and formats to govern safe and secure exchange of interbank payments inside Russia. …

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