Russia's Central Bank wants to stop bad financial managers from leaving the country

The Bank of Russia has developed legislation that would temporarily ban the owners and managers of bankrupt credit institutions from traveling abroad, a government source told the news agency Interfax.

The restrictions would also apply to the beneficiaries and management of bankrupt pension funds and insurance companies. Russia’s Economic Development Ministry has reportedly endorsed the law's concept.

It was nearly a year ago, in October 2016, when the head of Russia’s Central Bank, Elvira Nabiullina, first proposed travel restrictions on the directors and owners of banks, insurance companies, and pension funds under investigation. Russia’s Deposit Insurance Agency has sought similar legislation.

In the past few weeks, Russia’s Central Bank has intervened to rescue two major banks: Otkritie and B&N. The banks’ capital shortfalls are estimated to be roughly 400 billion rubles ($7 billion) and 300 billion rubles ($5.2 billion), respectively. Both banks are now being reorganized through the Banking Sector Consolidation Foundation, which the Central Bank controls.