What is bank resolution? Bank sanction: what to do for depositors

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In 2013-2014, the Central Bank revoked the license of many Russian banks. This not only caused panic among depositors, but also hit other credit institutions. Clients began to withdraw funds even from financially stable banks. Then, for the first time in a long time, the word "sanation" was heard very loudly. What does the procedure for saving a credit institution by the state imply? In this article, you will learn what bank resolution is.

Definition

A set of procedures aimed at restoring the financial condition - reorganization of the bank. What does it mean? If it is possible to avoid the bankruptcy of a financial institution, then the management of the bank will be transferred to the Deposit Insurance Agency (DIA). Reorganization is beneficial for customers who have invested a deposit, as it allows you to save all the invested funds. If the bank's license was revoked, the DIA can only refund part of the deposit amount. But if there is an investor who buys out the entire credit institution, then legal entities will also benefit, as they will be able to continue to be served in the organization. The new owner will use the whole range of measures to restructure the creditordebt and getting rid of illiquid assets. That's what a bank bailout is. But it is done quite rarely. If the hole in the balance sheet corresponds to the volume of assets, then nothing can be done.

Rehabilitation is carried out if:

- the bank is significant for the economy of the country or a particular region ("Solidarity" in the Samara region);

- a credit institution is stable, but faced with a temporary lack of liquidity due to the panic of the population (Gazenergobank).

The decision is made by the Central Bank of the Russian Federation. Further, the Deposit Insurance Agency (DIA) provides temporary management of the bank until its assets are transferred to another financial institution. She will also be allocated funds to restore solvency and pay obligations. Sometimes the DIA manages to restore a problem bank on its own. But most often you have to look for investors. It must be a reliable financial institution with a positive recovery experience in the past. The bank being restored in total can receive capital from three sources: from the Central Bank, the DIA and a private investor. That's what bank resolution is.

Positives

The recovery procedure helps individuals and legal entities to keep their deposits in full. In the event of a bank failure, enterprises will lose all their savings, and ordinary citizens will receive only amounts up to 700 thousand rubles. Reorganization allows you to fully restore the activities of a financial institution. Additional capital makes it possible to save jobs and quicklytroubleshoot current issues.

What is the benefit of the investor

The state only bails out strong or regionally important banks. The bank's reorganization greatly contributes to business development and increased confidence in the investor on the part of local institutions. What does it mean? In exchange for the invested funds, the financial institution receives a share of the capital, the organization's product line, infrastructure facilities and its customer base. The investor will be able to use all this data for synergy with his other activities.

Procedure

The basis for rehabilitation is a real opportunity to restore the bank's solvency. The recovery procedure should not exceed 1.5 years. If another bankruptcy case has been filed within three years, the bank cannot be re-sent for reorganization.

After satisfying the petition, the arbitration court announces a competition for participation in the recovery procedure. The main directions for restoring the solvency of the bank: postponing the repayment of issued bonds, with a decrease in their%, the issue of new securities, the provision of additional loans, the prolongation of previously received loans, etc. Creditors, the owner of the bank and its employees have the priority right to participate in the rehabilitation.

Bank reorganization: what to do for depositors

It is important to remember that during the procedures to restore the financial condition of the organization, all customer funds will be saved. The bank receives additional capital, which mustbe aimed at eliminating all current liquidity problems. Earlier in schools, strong students helped the weak ones. Now the same practice is applied in the banking sector. Therefore, the most important thing in this situation is not to panic. Even if the management announced that it was temporarily "freezing" all funds, depositors would be able to return the money, but it would take some time.

It is important to distinguish between the concepts of "reorganization" and "bankruptcy". In the second case, the return of citizens' funds in the amount of up to 700 thousand rubles is guaranteed by the DIA. According to the Law "On insurance of deposits of individuals in banks of the Russian Federation", payments should begin 14 days after the revocation of the bank's license. But in practice, much more time will pass. And the point here is not even that the DIA will not be able to immediately return the deposits with the promised high interest rates. Much more time will be spent on analyzing the financial condition and compiling a register of depositors.

Enterprises and individual entrepreneurs will most likely not be able to return their deposits. According to the Federal Law "On the Insolvency of Credit Institutions", such claims are satisfied after the payment of obligations to individuals, the DIA and the Central Bank, provided that the financial institution still has funds. Therefore, it is so important that an investor appears who can restore the organization's solvency.

Although many bank licenses were revoked last year, the Agency still has a reserve of funds. If the money runs out, the Central Bank will provide additional funding by issuing the national currency in advance. The devaluation of the ruble can hit hard on the owners of foreign currency deposits. The amount of their deposit, including interest, will exceed 700 thousand rubles. Owners of ruble deposits, although they will be able to return their savings, but by that time they will be greatly depreciated. Therefore, in this case, we can advise the following: at the first hint of a strong devaluation of the currency, contact the bank branch with a request to "break" your deposit into several parts. Even better - re-register part of the contribution to a relative. You cannot be denied a non-cash transaction, since you do not actually take the currency from the bank.

What happens next

At the end of the reorganization procedure, the new investor independently decides whether to keep the brand, business model and team of employees or develop everything from scratch. Most of the time they change. The Central Bank cannot influence this decision in any way.

Bank resolution 2014

In the outgoing year, the news about the introduction of an interim administration in one of the oldest credit institutions in the country caused the most panic. We are talking about OJSC "B altic Bank" (St. Petersburg). The reorganization of the financial institution began in August 2014. To restore liquidity, the Central Bank first allocated 10 billion rubles. The DIA held a tender for participation in the recovery procedure of the credit organization "B altic Bank". Rehabilitation has been going on for five months now. The process is led by a new investor, Alfa-Bank OJSC. During this time, many clients have already experienced positive changes in the organization's activities. brand andbusiness model has remained unchanged. But customers can now withdraw funds from an additional 5,000 Alfa ATMs without commission. The network of offices will not be quickly rebuilt. Management also assured that the tariffs on deposit and loan agreements will remain unchanged until the end of their validity period. Previously, Alfa-Bank participated in the rehabilitation of the Northern Treasury. This financial organization was liquidated after the restoration and attached to the investor. The same fate awaits the B altic Bank. The reorganization will be carried out at the expense of budgetary funds in the amount of 57 billion, which the investor received under preferential 0.51%.

Latest news

2014-18-11 it became known that the DIA assumed the functions of a temporary administrator in the management of the ROST group. In addition to the credit institution of the same name, it includes four more institutions: Kedr, Akkobank, SKA, Tveruniversalbank. In October 2014, the Central Bank began to assess the financial condition of the holding, the results of which indicated the need to introduce measures to prevent bankruptcy. Now the DIA is developing plans for the rehabilitation of each of the five credit institutions. This is what a banking group resolution is.

CV

If a bank plays an important role in the country's economy or is faced with a temporary lack of liquidity, then the Central Bank may begin the procedure for rehabilitating the organization. In this case, the DIA assumes the role of temporaryadministrator. In parallel with the financial analysis, a competition is announced for investors who could restore the solvency of the organization. That's what bank resolution is.