The Ministry of Finance of the Russian Federation: Large deposits of individuals may convert into troubled banks – Rosbalt.RU

January 29, 2016, 15:35 | Moiseev | problem bank | Crisis

 Large deposits of individuals may be forcibly converted into the capital of troubled banks. Such a statement was made by Deputy Finance Minister Alexey Moiseev.

 Large deposits – the size of 100 million rubles. – Individuals can be forcibly converted into the capital of troubled banks for their financial recovery in the new Russian banks mechanism bail-in (forced conversion of the claims of creditors of the third stage in subordinated loans or share capital of the Bank), RBC reports.

 According to Moses, the idea being discussed in the framework of interdepartmental discussion in the Finance Ministry. At the same time, he added, there is no precise understanding of how the marginal amount of the deposit in question.

 Now, as clarifies RBC bail-in mechanism is not provided for by Russian law, but the debate about whether to thereby close the “hole” problem banks, conducted in 2015 c.

 This issue has become particularly relevant against the backdrop of rising costs Deposit Insurance Agency (DIA) to reorganize troubled banks, and payments to depositors of banks with revoked license. In December, the DIA has asked the Central Bank with a request to allocate an additional 140 billion rubles. to finance the payment of compensation on deposits. In 2015, the Central Bank revoked the license of over 60 lending institutions. Only in Vneshprombank, the license which the regulator withdrew in January 2015, the size of the “hole”, according to the Central Bank, has exceeded 187 billion rubles.

According to the head of Sberbank German Gref, in 2016 to lose a license can still about 10% of Russian banks.

In January 2015 DIA also increased the amount of additional contributions to the Deposit Insurance Fund for banks to inflate the rates on deposits.

In turn, the deputy chairman of the Central Bank of Russia Mikhail Sukhov at a meeting with leadership of the Central Bank of bankers organized by the ARB, said the Central Bank expects in 2016 to begin to use the mechanism of bail-in, that is, use of forced lenders to address the problems of unstable banks. He clarified that the decision to offer financial recovery of banks to minimize large-scale government spending while maintaining the confidence of creditors in the bank’s activities.

 

 In December, Central Bank head Elvira Nabiullina also said that the use of bail-in in some cases will not revoke the license, and to maintain the bank’s solvency with the prospect of growth.