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. Last Updated: 07/27/2016

Central Bank Chairman Fires his Reform-Minded Deputy

Central Bank Chairman Sergei Ignatyev on Friday fired his first deputy, Tatyana Paramonova, after she was passed over to serve on the bank's board of directors.

An official with the Central Bank, who declined to be identified because of the bank's policy, confirmed an earlier report by Vedomosti about the ouster of Paramonova, a supervisor of banks and regulator of their balance sheets.

The official cited staff reductions as the reason for her departure.

Paramonova's dismissal was not surprising following Ignatyev's refusal to put her on the board, said Natalya Orlova, senior banking analyst at Alfa Bank.

She was known for her cautious attitude toward the banking system. She supported reducing the number of smaller, less reliable banks in the national deposit insurance system.

"The news was expected because she didn't get a seat on the board," Orlova said. "She was always calling for more revolutionary steps."

Several bankers have said that Paramonova failed to gel with the new team brought in by Ignatyev. He expanded the number of his deputies from two to four, reducing Paramonova's responsibilities.

She was responsible for ensuring the implementation of international accounting standards at the majority of banks. Paramonova temporarily assumed the role of bank chairman in 1994.

Bloomberg, MT