Lack of  credit union mastercard law rules on the establishment of a credit institution in the form of a consumer cooperative does not preclude the participation of credit cooperatives in the banking system.

Article 1 of the Federal Law of 02.12.90 N 395-I "On Banks and Banking Activity" stipulates that credit institutions can be formed only in the form of a business entity that is in the four legal forms:

• Open Joint Stock Company;
• closed joint stock company;
• limited liability company;
• additional liability.
•
It is clear that the choice of legal forms for the credit institution is determined by its specific commercial profile, requires assurances of its financial stability, credibility of depositors and creditors, as well as organizational and legal support to protect their interests. Yet such legislative constraints will improve and expand the scope of financial services, difficult entry into the banking system specific financial institutions, more than that, in fact, rule out this possibility. It appears that the lack of standards in the legislation on the establishment of a credit institution in the form of a consumer cooperative does not preclude the participation of credit cooperatives in the banking system, including the existence of co-operative banks. We emphasize that the original version of the Law on Banks of any restrictions in the choice of the legal form for the bank did not set, noting only that the banks are formed on the basis of any form of ownership, including the attraction of foreign capital, and operate on a commercial basis.

The possibility of the creation of a cooperative bank was provided with the Law of 26.05.88 N 8998-XI "On Cooperation in C", in accordance with Art. 23 of which unions (associations) have the right to form cooperatives self-financing, sectoral or territorial cooperative banks. Further, the cooperative bank credit institution understood that the democratic principles provide funds development of the cooperative, produced cash management services, to represent its interests in the economic and financial bodies. However, pursuant to section 5.3 of the Federal target program of stabilization and development of the agricultural production in the 1996-2000 * (3), which provides an exception to the general legislative regulation of banking institutions small agricultural credit, based on co-operative principles, and with the introduction of the Law changes in the banking, establishing restrictions on the choice of legal forms for the credit institution, the creation of co-operative banks has become impossible.

However, given the urgent need for financial services, primarily for the development of the peasant (farmer) farms, private farms citizens, small rural businesses, and in addition, to meet the financial mutual citizens, provisions of the Federal Law of 08.12.95 N 193 -FZ "On Agricultural Cooperation" and the Federal Law of 07.08.2001 N 117-FZ "On the credit consumer cooperatives of citizens' ability to create anchored outside the banking system credit cooperatives and credit consumer cooperatives of citizens for credit and savings funds of members of such cooperatives  credit union mastercard .

Immediately, we note that the reference in the law on co-operation as one of the goals of the credit cooperative lending its members legally incorrect, because in accordance with Art. 819 CC loans is exclusively by banks or other credit institutions licensed to conduct banking operations. Given that credit cooperatives are today at the number of credit institutions, and activities to extend funds to members of such cooperatives is made by the loan agreement, it would be more correct to legislate as one of the education credit cooperative financing of its members or giving them loans, but not lending.

Needs to be clarified, and the very name of the credit cooperative. Thus, in accordance with paragraph 3 of Art. 4 of the Law on Credit Cooperatives of Citizens name credit cooperative shall contain the words "credit consumer cooperative of citizens."

The legitimacy of such a name is questionable, since according to the article. 7 of the Banking Act, no legal entity, with the exception of the Bank has received a license to conduct banking operations, can not use in its name the word "bank", "credit institution" or otherwise indicate that the legal person is entitled to banking. Using a credit cooperative in the name of such a phrase is perceived, in our opinion, not only as an indication that such a cooperative has the right to grant credits, that is the implementation of one of the types of licensed banking operations, which is unacceptable  credit union mastercard .