Abstract:

The case studied in the paper represents systemic flaws in Russian Central bank regulation system that was viewed by international advisors as one of the best balanced (resulted in multiple rewards received by its head officer Elvira Nabiullina). Tatfondbank was among of the top-50 banks in Russian Federation, who lost sustainability a week after it was approved balanced by the Central bank assessment procedures. In this paper we analyze the reasoning behind regulation system mismanagement and assess possible ways to develop bank liquidation system to secure stakeholders rights in case of bank bankruptcy.