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. Last Updated: 07/27/2016

Stolichny Withdraws From Association

Commercial banking giant Stolichny Bank announced it is withdrawing its membership in the Association of Russian Banks, a powerful lobby group, in a dispute over management style.

In a letter published Saturday on the front page of the business paper Commersant Daily, Stolichny Bank president Alexander Smolensky accused the association of turning into an "interbank politburo."

Growing bureaucratization and a lack of turnover in the association's council of directors has resulted in an industry-rights group out of touch with the very industry it was created to represent, Smolensky wrote."The ARB prefers that which brings more glory than benefit over realistic and necessary matters."

Accusing the association of indulging in "big politics" by sending ultimatums to various government offices, Smolensky said the group should include representatives of leading regional banks as well as Moscow banks.