insolvent banks. The Fund is not a legal entity and its property is separate from the rest of the Bank of Russia’s property. The fund is managed by a special management company.

Legislative framework

Federal legislation allowing the establishment of the Fund was adopted in 2017. The fund and the management company operate on the basis of the laws “On Investment Funds”, “On the Securities Market” and “On Insolvency (Bankruptcy)”.

Activities of the Foundation and its management

The fund is managed by a single participant represented by LLC " Management Company Banking Sector Consolidation Fund,” whose owner is the Bank of Russia. Thus, the management company is an autonomous division of the Bank of Russia, which is completely controlled by it.

The management company of the Consolidation Fund was created by the Bank of Russia in July 2017, the first general director Alexey Kuznetsov, who previously worked at the EFG Asset Management Management Company of the Safmar group, was appointed.

Authorized capital the company amounted to 1.5 billion rubles. Equity management company is fully invested in government securities of the Russian Federation.

On behalf of the Bank of Russia, it participates in preventing bank bankruptcy. The management company, on the basis of a license, has the right to engage in trust management mutual investment funds, dealer activities and management activities securities. The fund may consist of a group of funds that are created by decision of the Board of Directors of the Bank of Russia for the financial rehabilitation of individual banks. The Bank of Russia buys shares of funds, due to which the funds of the Consolidation Fund are formed.

Through the Fund, the Bank of Russia can independently invest in the capital of the bank being rehabilitated. It is believed that having improved the banks, the Fund will sell them (not necessarily at a profit).

Accountability

The effectiveness of using the Fund's funds is assessed annually by the chief auditor of the Bank of Russia. Information about its activities should be included in annual report Bank of Russia. Information from the chief auditor of the Bank of Russia on the effectiveness of use Money, constituting the Banking Sector Consolidation Fund, is presented for the first time in the annual report for 2017.

Financial recovery projects

Bank	Decision date about reorganization	Bank transfer date under the management of FCBS Management Company	Wellness plan/Result
PJSC Bank "Financial Corporation Otkritie"	29.08.2017	29.11.2017	Binbank will be recapitalized and merged with FC Otkritie on January 1, 2019.
PJSC "BINBANK"	21.09.2017	15.12.2017
PJSC Promsvyazbank	15.12.2017		The bank was transferred to the state in the person of Rosimushchestvo and was chosen as the support bank for transactions with enterprises of the Russian defense industry and large government contracts.
JSC Bank "Sovetsky"	22.02.2018		License revoked.
PJSC National Bank"TRUST"	15.03.2018		The possibility of creating a bank of “bad assets” is being discussed ( "bad bank") .
JSC "ROST BANK"	21.09.2017	15.03.2018
JSC Bank AVB	05.04.2018
PJSC "Asian-Pacific Bank"	26.04.2018

The effectiveness of financial recovery

By international standards Supreme Audit Institutions (ISSAI) of the International Organization of Supreme Institutions financial control INTOSAI, approaches of the Association of Chartered Certified Accountants (ACCA), standards Russian authorities state control and audit, performance audit refers to the assessment of the achievement of set goals and desired results with maximum return from available resources while minimizing resource costs.

Due to the impossibility of using comparative approach To assess effectiveness when determining the effectiveness of the use of the Fund’s funds, the assessment is carried out in four stages:

• the comparative effectiveness of the volume of funds allocated by the Bank of Russia relative to the amount of damage to the economy in the event of a bank bankruptcy scenario;
• optimal use of resources to restore performance financial condition jar;
• efficiency of use of funds by bank management;
• the effectiveness of the Bank of Russia's sale of bank shares in the current market conditions.

Based on the results of 2017, an assessment of comparative efficiency was carried out for the banks PJSC Bank FC Otkritie, PJSC BINBANK, PJSC Promsvyazbank. It was based on determining the volume of losses of economic agents by modeling a bank bankruptcy scenario. The losses included both losses of direct creditors (direct effect) and creditors of creditors (indirect effect), if the creditor's losses lead to its insolvency. Modeling the bankruptcy scenario of three banks showed that the use of the Fund’s funds in the amount of 1,456.2 billion rubles in 2017 made it possible to prevent losses of economic agents in the amount of at least 2,594.6 billion rubles.

The total amount of financing of PJSC Bank FC Otkritie as of January 1, 2018 amounted to 836.2 billion rubles, of which 456.2 billion rubles were provided for additional capitalization and 380 billion rubles were provided for maintaining liquidity in the short term. The potential volume of losses of economic agents was estimated at about 1.1 trillion. rubles Thus, the effectiveness of the financial recovery operation was considered satisfactory.

see also

Comments

Notes

1. Polyakova Yu. Rehabilitation outlined a new mechanism // Kommersant. - 2017. - April 24 (No. 71).
2. Terchenko E. Alexey Kuznetsov, a native of the Bin group, will manage the bank resolution fund // Vedomosti. - 2017. - July 18.
3. Information on state registration of legal entities, individual entrepreneurs, peasant (farm) households. Federal Tax Service of Russia (2017).
4. Calculation of own funds of "MC FCBS". UK FCBS (2017).
5. Vladimir Putin signed the law on the creation of a fund for the consolidation of the banking sector // Kommersant. - 2017. - May 2.
6. Borisyak D., Voronova T. The Central Bank has found someone to trust with the reorganization of banks // Vedomosti. - 2017. - May 19.
7. On measures to improve the financial stability of PJSC Bank Otkritie Financial Corporation. Press service of the Bank of Russia (August 29, 2017).
8. On the implementation of measures to improve the financial stability of PJSC Bank FC Otkritie. Press service of the Bank of Russia (November 29, 2017).
9. Daria Borisyak. The Central Bank will inject 57 billion rubles into the capital of Binbank, Vedomosti (March 6, 2018).
10. Pavel Eskov. The merger of Binbank and Otkritie will take place in January 2019, Financial Newspaper (September 7, 2018).
11. On measures to improve the financial stability of PJSC BINBANK and JSC ROST BANK. Press service of the Bank of Russia (September 21, 2017).
12. On the implementation of measures to improve the financial stability of PJSC BINBANK
13. On the implementation of measures to improve the financial stability of PJSC Promsvyazbank. Press service of the Bank of Russia (December 15, 2017).
14. Yulia Polyakova. Promsvyazbank will be put into the defense industry, Kommersant (January 18, 2018).
15. About measures for financial recovery. Deposit Insurance Agency (October 28, 2015).
16. About additional measures for financial recovery. Deposit Insurance Agency (March 9, 2015).
17. On further measures for financial recovery. Deposit Insurance Agency (February 20, 2017).

On the verge of collapse

According to the report on the development of the banking sector in 2017, prepared by the Central Bank, 140 credit institutions completed last year with losses of 772 billion rubles. About 95% of this amount was accounted for by banks, against which measures are being taken to prevent their bankruptcy.

One of the unprofitable organizations was B&N Bank - at the end of September 2017, the Central Bank announced that the owners of the 8th largest bank in terms of assets were asking to consider the possibility of its rehabilitation through the FCBS. The main owner admitted that the problems of those taken for rehabilitation turned out to be too serious, and in the conditions of a falling market it was not possible to cope with them.

"By new scheme to recapitalize a problem bank, the Central Bank injects directly into its capital, and thus, the bank immediately complies with all regulations, he told Gazeta.Ru, noting that previously, concessions for rehabilitated banks became loopholes for unscrupulous investors who bought up problem credit institutions and turning them into “sewers” ​​for their toxic assets. And this advantage is not the only one. “When using the old scheme, there is a risk, which in fact was realized, that rates will fall and banks will not be able to receive sufficient income from investments free money Central Bank for the entire life of the loan, explains Danilov, noting that this created the risk of the need for a new reorganization. When using the new scheme, there is simply no such risk, because the bank is recapitalized immediately.

In addition, rehabilitation through the FCBS is cheaper. “Under the old scheme, in order to close a hole in capital, for example, of 100 billion rubles at market rates of more than 10% per annum, the Central Bank had to allocate an amount that was approximately one and a half times greater - 150 billion rubles. Now the rates have fallen, accordingly, the amount to close a hole of the same size would already be 200 billion rubles or more. The money that the Central Bank issues is a ruble issue, which is fraught with increased inflation. According to the new scheme, to close a hole of 100 billion rubles, you need to print a similar amount, that is, a one-to-one ratio. There is still a ruble issue, but it is much less, at current rates - twice,” says the expert.

Assets of Discord

“The Bank of Russia is aimed at maximizing the return of funds that were allocated for financial recovery. And not only through the sale of the bank and work with problematic and non-core assets, we have talked about this many times. But also due to coercion former owners to cover losses and return withdrawn assets,” said the head of the Central Bank on June 7 at the XXVII International Financial Congress. According to her, now the only mechanism that allows this to be done is a lawsuit.

“We have proposed and are offering a mechanism of subsidiary liability. We have not yet met with understanding on this issue, but we will continue to convince our colleagues,” noted the head of the regulator.

Some ex-owners of banks, however, are ready to meet the regulator halfway and transfer their assets to the FCBS to cover losses for reorganization - however, so far the only example of such voluntary cooperation is the former beneficiary of B&N Bank.

“Everything ended relatively well at Binbank - the bank was recapitalized, the huge interbank loan that was hanging on Binbank, at the expense of the Central Bank’s money, left its balance sheet. Binbank is now more or less clean, it has fewer problem assets than , again the owner transferred more assets to pay off the hole in capital,” an S&P credit analyst shared his opinion with Gazeta.Ru.

The deputy chairman of the Central Bank announced the beginning of the transfer of assets by ex-shareholders of B&N Bank at the end of October 2017. In particular, Mikail Shishkhanov ceded his assets in the real estate market to the regulator - the entire Inteko business and part of A101 Development with a total development portfolio of almost 5 million square meters. m. It is assumed that the Central Bank will later sell these organizations to specialized market players. As Nabiullina said in an interview, the transferred assets are estimated at 100 billion rubles.

B&N Bank itself is also expected to be sold after it is merged with . “I want to outline a principled position here. The state's share in the economy should gradually decline. In this regard, I would like to note that in Lately As a result of the rehabilitation of the banking system (and this is a very correct process, I support it), a number of financial assets came under state control. But they need to be energetically brought to market and sold,” the president stated in his message to the Federal Assembly.

A similar idea was voiced by Elvira Nabiullina back in September 2017. “We plan to quickly put in order the financial institutions that receive funds from the Bank Consolidation Fund, and, if necessary, restructure such banks, including merging and bringing them to the market, not necessarily by searching for a strategic investor, but also by selling them in parts, not at once or an IPO. We do not have a goal to increase the state's share in the banking sector. On the contrary, our task is to Russian market there were healthy and successful private banks with a viable and profitable business model,” the head of the Central Bank assured.

The management company (MC) under the Banking Sector Consolidation Fund, which will deal with the reorganization of banks, will be headed by the former general director of the EFG Asset Management Management Company Alexey Kuznetsov, Interfax writes with reference to materials from the new management company. Two people familiar with Kuznetsov confirmed to Vedomosti that new job he actually found it at the Central Bank. Sources of Vedomosti reported in May of this year that the main contender for the post of head of the management company under the consolidation fund is Anna Orlenko, director of the banking supervision department of the Central Bank. However, the regulator’s press service did not explain why the choice fell on another candidate.

A year ago, Central Bank Chairman Elvira Nabiullina said that operating mechanism rehabilitation is ineffective and it is necessary to transfer the rehabilitation of banks from the Deposit Insurance Agency (DIA) and private investors to a fund that will be managed by the regulator. According to her, the Central Bank was concerned that “the sanatorium banks were trying to transfer problem assets to the banks being sanified, and under-create reserves, because we gave the banks undergoing sanation a delay in forming reserves.”

It is noteworthy that the Bin group, whose assets are managed by the EFG, is one of the largest sanators, which has significantly increased its assets by rescuing banks according to the old scheme. Market participants associate the management company with the Bin group, although representatives of the EFG assure that they are not connected in any way.

EFG is engaged in asset management of private pension funds(NPF) of the Safmar group, Kuznetsov headed the company from 2012 to 2017. It was under him that the Bin group acquired its largest pension asset - NPF Raiffeisenbank, which was later renamed Safmar. Now the Safmar pension group, in addition to the NPF of the same name and Trust, includes Mospromstroy-Fond. According to RAEX, EFG Asset Management at the end of 2016 managed securities worth 190.4 billion rubles, of which 155.4 billion rubles. – pension savings.

“This is the core management company of the Bin group, which grew very quickly, so completely different assets of this group were transferred to the management of EFG - both pension assets, on which it concentrates now, and banking ones,” notes RAEX analyst Pavel Mitrofanov. According to him, even the very process of cleaning and improving the quality of the NPF portfolio is reminiscent of what the management company of a consolidation fund will most likely have to do.

The management company will manage the banks that will be included in the fund for financial rehabilitation, however, the powers of the head of the management company of the consolidation fund are not specified in the law: it only states that, having received shares of the banks being rehabilitated, the management company will create mutual funds investment funds and sell shares of the Central Bank. The regulator may assign the management company the functions of a temporary administration. A representative of the Central Bank only clarified to Vedomosti that the capital of the management company will amount to 1.5 billion rubles. and it will start working before the end of July.

All major decisions regarding the activities of the fund will still be made by the Central Bank, says Oleg Vyugin, a member of the board of directors of the Safmar group. True, the management of the consolidation fund is not only the management of the securities of the banks being rehabilitated, but also the very management of the activities of such banks, which goes far beyond the powers of classical companies, he adds: “Such specialists are very expensive in the market, it is unlikely that you can earn that much at the Central Bank , however it is very good position for future career growth." Judging by Kuznetsov’s previous work experience, his future activities should not cause him problems, believes Andrei Zakharov, director of the personnel selection department for financial institutions of the Contact agency.

(ATB) to LLC "Management Company of the Fund for Consolidation of the Banking Sector" (FCBS) in order to implement all necessary measures to provide support and further development bank activities.

The Central Bank's press release notes that the bank will continue to operate as usual, fulfilling its obligations and making new transactions. ATB Bank ranks 60th in terms of assets among Russian credit institutions and is one of the largest in Siberia and the Far East.

Previously, a similar financial recovery mechanism was introduced in relation to three other credit institutions: FC Otkritie, B&N Bank and Promsvyazbank. In addition, in February - March 2018, three more were transferred under the management of FCBS: Trust Bank, Rost Bank and Sovetsky Bank, but the procedure for their reorganization began even earlier - in 2014-2015.

Reasons for creating FCBS

After assuming the post of Chairman of the Central Bank of the Russian Federation in 2013, Elvira Nabiullina intensified the process of rehabilitation of the banking sector by closing credit institutions convicted of questionable transactions or experiencing financial problems. Small banks began to lose their licenses. In 2014-2017, the Deposit Insurance Agency (DIA) paid compensation to their depositors in the amount of over 1.7 trillion rubles.

For larger banks, a financial recovery (rehabilitation) mechanism was provided with the participation of the DIA or other credit institutions. However, their resources could no longer be enough to rehabilitate banks that were in the top 20 in terms of assets. There were also examples when private banks had to be saved, which were tasked with sanitizing credit organizations (Otkrytie and Trust, B&N Bank and Rost Bank, etc.).

In July 2015, Prime Minister Dmitry Medvedev gave instructions to create a so-called bad debt bank or sanatorium bank in Russia, which would support systemically important corporations.

As part of the reorganization mechanism, funds are allocated by the state through the Central Bank to eliminate the financial problems of a credit organization. Initially, a temporary administration is introduced in the bank, which after the assessment is completed financial situation The bank transfers control to FCBS.

There is no moratorium on satisfying creditors' claims. If the temporary administration does not identify a “hole” (excess of liabilities over assets) in the capital of the bank being rehabilitated, its current owners will retain 25% in it, the remaining shares after completion of the rehabilitation will become the property of the FCBS.

As part of the reorganization, funds in the accounts of the top management of the banks being rehabilitated in mandatory written off to cover Central Bank expenses. Also, former managers of the credit institution are required to return previously received bonuses. This mechanism is beneficial to bank clients: in case of deprivation of licenses individuals could count on reimbursement of deposits in the amount of up to 1.4 million rubles, and companies had no rights to reimbursement through the DIA at all.

On September 30, 2017, Nabiullina noted that after the completion of the reorganization procedure, the regulator does not plan to leave the banks subject to it in state ownership: they can subsequently be sold on the stock exchange. At the same time, the regulator plans to return most of the funds spent on reorganization.

Cases of rehabilitation involving FCBS

"Opening"

On August 29, 2017, the Central Bank decided to implement measures aimed at increasing financial stability Bank FC Otkrytie (the largest private bank in Russia, the credit institution ranked 8th in terms of assets at that time). Before this, against the backdrop of a downgrade of the Analytical Credit rating agency(ACRA) and rumors about possible financial problems at Otkritie, private and corporate clients in July - August 2017, 528 billion rubles were taken from it. This led to a sharp reduction liquid assets jar. In October it was reported that the size of the “hole” in the bank’s capital was about 190 billion rubles.

On November 29, the functions of the management administration at Otkrytie were transferred to the FCBS. On December 7, the Bank of Russia announced that it would recapitalize Otkritie by 456.2 billion rubles. On December 11, it was announced that the regulator became the owner of 99.9% of the bank’s shares (and not 75%, which would have been possible if a “hole” had not been discovered in Otkritie’s capital).

On September 20, 2017, the press service of the Central Bank reported that the owners of Binbank (12th place in terms of assets) asked to consider the possibility of reorganization through the FCBS. The main owner, Mikail Shishkhanov, explained that he “did not calculate the business forces, the problems of Rost Bank, which was taken for reorganization, and MDM Bank turned out to be much more serious than expected in the conditions of a falling market and the current economic situation.”

On September 21, 2017, the Central Bank launched the reorganization of B&N Bank with the participation of FCBS. Then the regulator announced that the bank needed additional reserves in the amount of 250-350 billion rubles. The bankruptcy prevention plan was approved on October 13, 2017. On December 15, 2017, the Bank of Russia assigned the functions of the temporary administration for managing B&N Bank to the FKBS. On March 6, 2018, the additional capitalization of B&N Bank by 57 billion rubles was approved.

The Central Bank plans to merge B&N Bank with Otkritie FC after completing additional capitalization in 2019.

Promsvyazbank

On December 15, 2017, it was announced that Promsvyazbank was coming under the management of FCBS. It ranked 9th in terms of assets. The “hole” in his capital was estimated at 100-200 billion rubles. On January 19, 2018, Finance Minister Anton Siluanov announced that Promsvyazbank, as part of the reorganization, would be turned into a supporting bank for state defense orders and large government contracts.

It was subsequently announced that it would be used for government support Russian companies subject to foreign sanctions. On March 21, 2018, the Bank of Russia announced that the Deposit Insurance Agency would buy 99.9% of Promsvyazbank shares in the amount of RUB 113.4 billion. The bank came into possession of DIA on March 29.

On April 24, 2018, the former ex-head of the Russian Export Center Pyotr Fradkov became the head of the temporary administration of Promsvyazbank.

"Sovetsky", "Trust" and "Rost Bank"

On February 22, 2018, Sovetsky Bank (106th place in terms of assets, previously its sanator was Tatfondbank, which lost its license in 2017), was transferred under the management of FCBS, and on March 15 - Trust (19th place) and " Rost Bank (15th place), whose sanatoriums were previously Otkritie and former owner B&N Bank Mikail Shishkhanov. Based on the balance sheets of these and some other credit institutions, in July 2018 it is planned to create a fund of non-core and “bad” assets, the owner of which will be the Bank of Russia.

The Central Bank continues its emergency consolidation of the banking sector. One country - one bank. The reorganization of B&N Bank and Otkritie makes the Central Bank the main banker of the country.

The new reorganization mechanism that the Central Bank applied to the Otkritie FC bank, and from September 21 to B&N Bank, radically changes the very configuration of the banking sector in Russia. From a mega-regulator, the Bank of Russia is turning into the main participant in the system. And she herself is increasingly moving into manual control mode.

Following FC Otkritie, the Bank of Russia may begin the operation of rescuing another bank from the “major league”, albeit not included in the list of systemically important ones - B&N Bank. This credit institution ranks 12th in terms of assets as of September 1, 2017. The owner of the bank himself asked for rescue.

On the morning of September 20, rumors that had been circulating among market participants for several days about big problems and the possible reorganization of B&N Bank as a bank from the so-called Moscow ring began to take on flesh and blood.

“The owner of B&N Bank asked the Bank of Russia to consider the possibility of reorganization through the Banking Sector Consolidation Fund. We will make a decision on this issue in the near future,” the regulator’s press service told Banki.ru.

Mikail Shishkhanov, has headed the board of directors of B&N Bank since September 20

“We are now in an active negotiation stage with the Bank of Russia. Our goal is, with the support of the Central Bank through the Banking Sector Consolidation Fund, to carry out an effective financial recovery of Binbank and Rost Bank. This is the best option, which fully guarantees the interests of all B&N Bank clients, including each depositor,” said Mikail Shishkhanov, who, on September 20, “suddenly” decided to head the board of directors of B&N Bank. Moreover, in this post he replaced the main figure in the family business - Mikhail Gutseriev. Gutseriev himself, at the request of Shishkhanov, headed the board of directors of B&N Bank quite recently, in March 2017.

“I am confident that the joint actions of the regulator and the Binbank team will allow us to do everything necessary to protect the interests of all clients,” Shishkhanov said. In addition, he publicly admitted that he “miscalculated business forces.” According to him, “the problems of Rost Bank, which was taken for reorganization, and MDM Bank turned out to be much more serious than expected in the conditions of a falling market and the current economic situation.”

The Bank of Russia did not immediately respond to B&N Bank’s request for reorganization. In the middle of the day on September 20, a terse message appeared on the regulator’s website: “The Bank of Russia has decided to provide B&N Bank with funds to maintain liquidity based on an application from a credit institution.”

Without specifying the amount and conditions under which it was provided. According to some reports, it was about 120 billion rubles. It is clear that after such a tranche there could be no talk of revoking the license - this would directly threaten the reputation of the Bank of Russia itself.

In appearance, this was very reminiscent of the Central Bank’s emergency injection of liquidity into Otkritie shortly before the decision was made to reorganize the bank. The only difference is that in the case of Otkritie, neither the bank nor the regulator advertised that they were holding negotiations on reorganization.

Sanitation, as was said

Early in the morning of September 21, a source at Binbank told Banki.ru that the regulator’s message about the reorganization could be expected around 9 a.m. Moscow time. It appeared around 9:20 under the name .

As in the case of Otkritie, the Bank of Russia becomes the main investor of Binbank and Rost Bank, using funds from the Banking Sector Consolidation Fund. A provisional administration of the Central Bank was introduced into the banks.

“The implementation of measures to improve the financial stability of banks is carried out in cooperation with the current owners and managers of banks, which will ensure the continuity of their activities in the market banking services and subsequently carry out all necessary measures in order to further develop the activities of banks,” the regulator said in a statement.

According to the Central Bank, PJSC Binbank and JSC Rost Bank, as well as other banks of the group - JSC Binbank Digital (Moscow) and JSC Uralprivatbank (Ekaterinburg) - will continue to work as usual, fulfilling their obligations and making new transactions. The Bank of Russia will provide financial support to the group’s banks, guaranteeing the continuity of their activities.”

As in the case of Otkritie, there is no moratorium on satisfying creditors’ claims. The mechanism for converting creditors' funds into shares (bail-in) does not apply.

The new chairman of the board of B&N Bank, Evgeniy Davydovich, who was confirmed in this position at the beginning of the week, urged clients not to worry and assured that the bank will continue to operate as usual. Of course, already under the new owner - the Bank of Russia.

The Central Bank was preparing for the worst

On August 29, the Bank of Russia decided to reorganize the Otkritie FC bank through the Banking Sector Consolidation Fund and actually announced that it was becoming the owner of the credit organization. And already on September 1, he introduced .

Then the Central Bank announced that banks experiencing temporary problems with liquidity will be able to apply for such assistance if other sources of raising funds are exhausted, including within the framework of standard instruments of the Bank of Russia. The new mechanism was created by analogy with the one widely used in international practice emergency liquidity mechanism (ELM). The Bank of Russia will decide whether to provide funds to a bank within the MEPL, taking into account its financial stability, as well as systemic importance.

In order for the Bank of Russia to consider the issue of providing liquidity within the framework of the MEPL, the bank submits a request to the division of the Central Bank that supervises the activities of this bank. To the application, the bank must, in particular, attach information about the reasons for the need for MEPL, as well as a forecast schedule of cash inflows and outflows during the expected period of raising liquidity, indicating the bank’s ability to solve the problems that have arisen (“exit strategy” from MEPL). In the case of B&N Bank, this option seems unlikely.

But if other banks, seeing the situation with Otkritie and Binbank, want to turn to the Central Bank as the last and only savior, MEPL can play the role of a lifeline for someone.

Related materials: New banknotes of 200 and 2000 rubles are issued

In any case, it seems that the word “consolidation” is in the name of the new fund that is now saving the dying large banks, should be taken with the utmost literalness. The Central Bank is precisely consolidating the sector: if previously large banks absorbed smaller ones (including with the help of the clearly failed the previous reorganization mechanism), then now the regulator itself is engaged in such absorption. And if, in addition to Sberbank and VTB Group In Russia, a new, third giant state banking group will soon appear from those credit institutions that are now being rehabilitated by the Central Bank; this will become a completely logical development of events. It will be extremely difficult to find a third-party buyer for such giant banks with such problems in the foreseeable future. It is no coincidence that Mikhail Zadornov, appointed chairman of the board of FC Otkritie, said that it would take 3-4 years to correct the situation in the bank.

“And now that’s it, we’ve arrived”

Banki.ru asked experts how the reorganization of Binbank and FC Otkritie will change the Russian banking system:

Oleg Vyugin, Chairman of the Board of Directors of PJSC Safmar Financial investments", member of the supervisory board of PJSC"Moscow Exchange" former chairman Board of Directors of MDM Bank:

Oleg Vyugin, Chairman of the Board of Directors of PJSC Safmar Financial Investments

Three to four years later in the Russian banking system there will be a large public sector plus banks that will fall under reorganization and will be used to build a large National Bank. Because then, most likely, these assets will not be sold on the market. Most likely, if they create a management system, their shares will be slowly released to the market, and they will become semi-state or non-state. But this is not a very short way.

There will remain small banks that have found a niche in this life - which have a powerful shareholder with interest. For example, Rosneft has an interest in RRDB - they support it and will develop it. Or maybe a private shareholder who will develop the bank, as a rule, at the regional level. There are few such banks, but they may exist. Well, there are several large private banks that are noticeable on the market.

There was a crisis in the banking system before - in 2008-2009 and partly in 2014-2015. And now we are seeing its consequences, the state is forced to take measures. If you look at the crisis from American banks- The authorities reacted quickly. The British took all the banks under the state, except two, and stopped the problem. In our case, due to some circumstances, this was greatly delayed. They tried to solve the problem with some half-measures - for example, a trillion was added to capital (the program for additional capitalization of banks from the top 30 as part of the anti-crisis plan of the Central Bank) after 2014-2015, which was absolutely not enough. And now we will have to act more decisively and on a larger scale.

Has the Central Bank moved away from the principles of increasing competition? The principles of competition were abandoned a long time ago when, instead of privatizing state-owned banks, they began to develop and support them. This was already ten years ago. And, unfortunately, we are also reaping the fruits of this situation, the refusal of measures that politically seemed dangerous and risky. And now that's it, we've arrived. It is already very difficult to privatize Sberbank in this situation.

Why reorganization and not recall? When a bank has large obligations and claims from creditors, reorganization looks better than revocation of a license, since large funds must be paid and there may be large losses. Especially for those whose funds are not insured: corporations and other organizations. So the step is quite understandable. The Americans did it once with Lehman Brothers - they got full program and realized that this could not be done under any fear of death. Now everything is developing according to the same logic.

Sergey Khotimsky, First Deputy Chairman of the Board of Sovcombank:

Sergey Khotimsky, First Deputy Chairman of the Board of Sovcombank

Large banks such as Otkritie and Bin began to ask for help right now because the law on the consolidation fund appeared. And the Central Bank took on problems for which there was no tool before.

In the coming years, there will be 50-100 banks in Russia, and banking groups- even less. Various scenarios are possible. But in the private sector, in the public sector, and in the segment of foreign banks, only those who know how to earn a lot and at the same time transparently will remain. At some point, the share of private assets in the banking system may fall to 10-12%, but then it will grow. The strongest private banks will grow by attracting and generating capital. After the wave of nationalization, the state will actively begin to get rid of unnecessary state banks, but this is a five-year perspective.

The best banks win, the weakest ones drop out. There will be no consequences for investors. Not now banking crisis, since it is not the clients who suffer, but the owners of the banks and the owners of the subordination.

Problems in the banking system have been accumulating for 20 years. Accordingly, it now takes at least ten years for her to fully recover, so as not to cause shocks.

“In general the situation is tense”
Chairman of the board of a bank from the top 100, on condition of anonymity:

No one expected that Gutseriev would ask the Central Bank to rehabilitate B&N Bank. I wouldn’t be surprised that there is an intrigue in this story, that, for example, they will be given an unsecured loan, and then, they say, work on your own. In fact, it turns out to be a very bad precedent. Now the political assessment of these events is very important.

For Russia, with its tasks set by the president (for example, the development of small and medium-sized businesses), the nationalization of the banking sector is a serious systemic problem. After all, the sources of funding for small and medium-sized businesses will only be private, with all the ensuing restrictions.

For private depositors, the reduction in the number of banks will result in a reduction in the comprehensive supply. The products will not be as diverse. Until now, the market has developed under conditions of fierce competition. Private banks are forced to implement advanced technologies, while state-owned banks can work much more slowly. Look at Rosselkhozbank - it is in no hurry. Another thing is Sberbank, controlled by the ambitions of German Oskarovich (Gref). But Gref is not eternal.

Related materials: Do they give it easily to themselves?

At the same time, state banks have many internal and external restrictions in their development, especially in the form of sanctions. Therefore, a significant increase in the state’s share in the sector will not lead to anything positive. Because no one knows how the same Sberbank will be funded within the framework of the fourth package of sanctions: relying only on internal resources in the conditions of a freely convertible ruble. Overall the situation is tense.

If the state wants to leave this segment of the economy private, then the banking system must be represented by reliable private banks. I do not deny that weak assets are a systemic problem for private banks and the sector needs to be treated. But this needs to be done systematically, prudentially, working individually with each bank. The Central Bank has all the tools for this.

“The Central Bank has no other alternatives than to take over manual control”
Valentin Popov, director of the financial and economic department of RosEvroBank:

At the moment, talking about a full-fledged crisis in banking sector premature. The rescue of FC Otkritie and Binbank is, rather, echoes of the banking crisis of 2013. Of course, the Central Bank’s decision to start rescuing banks made it a key player in the operational banking business, and DIA faded into the background. The situation in the banking system is now quite difficult, and in such conditions the Central Bank has no other alternatives than to take over manual control.

Dmitry Fedenkov, head of the analytical department of Nordea Bank:

There are certain formal criteria for a crisis - in particular, the amount of funds spent by the state to support stability in the banking system. Today, this indicator quite objectively reflects the crisis in the sector. On the other hand, a crisis is a phenomenon that affects almost every participant. Latest events on banking market were noticeable because very large banks became participants. However, it cannot be said that they reflect the general trend in the industry.

The Central Bank has always been and will remain a key player in the banking business, both as a “lender of last resort”, ready to lend a helping hand if necessary, and as a strict regulator that suppresses dishonest behavior in the banking environment.

Competition and self-regulation of the market - important factors development in any industry. However, when it comes to financial stability in the system as a whole, intervention in market processes is in most cases 100% justified.

Will such reorganizations help improve the health of the banking system? Undoubtedly. Recovery, as we have seen, can occur both through the departure of unreliable or weak players from the market, and through reorganization. Banks currently undergoing “intensive therapy” have every chance of returning to the ranks of strong and reliable members of the banking community upon completion.

Sabina Khasanova, head of the information and analytical service of Banki.ru:

Sabina Khasanova, head of the information and analytical service of Banki.ru:

In my opinion, the presence of a crisis in the system is obvious. There is a crisis of confidence, a crisis of governance, a crisis of excessive regulation, and a crisis of private small banks. And now there is a crisis of large private banking groups, for one reason or another, unable to cope with management on their own. And the rapidly increasing growth of the state’s share in the sector. There is a contraction of the resource base, assets and capital, which has reached phenomenal proportions. Of the 532 banks currently operating, 166 are unprofitable based on the results of their work in August. That is, every third bank in Russia is unprofitable.

Is the Central Bank becoming a key player in the operational banking business? About 60% of all assets, capital and profit fall on the top 5 Russian banks, 80% are concentrated in the top 20 banks. The remaining 500 banks are content with what is left. The state's share in the banking system already reaches 70% and is likely to continue to grow - this will be facilitated by the Banking Sector Consolidation Fund.

Isn’t this approach evidence of the Central Bank’s departure from the principles of developing competition in the system? The regulator understands that equal conditions competition is the key to successful development of the system and economy. Whether increasing the state's share in the banking sector is a deliberate step or a forced measure is unknown, and any speculation on this topic without access to relevant information is nothing more than speculation.

Kirill Yakovenko, analyst at Alor Broker:

In this situation, it is not entirely appropriate to talk about the regulator’s departure from the principles of developing competition or the nationalization of the banking sector. Let’s say the Central Bank would not create a new mechanism for direct reorganization and the Banking Sector Consolidation Fund, adhering to market principles. In such conditions, one of the market participants would have to sanitize Otkritie and Bin, which occupy seventh and 12th places in terms of assets, respectively. Let’s assume that the sanators were found and received the assets of two large credit organizations, as well as the banks being sanified by these organizations. I do not exclude that in this situation, in the next two, maximum three years, the sanatorium itself will be needed. This is a vicious circle of transfer of problem assets, which is simply impossible to break using conventional recovery mechanisms.

On the other hand, the bankruptcy of large, and especially systemically important market participants, is impossible in the current conditions. Yes, the example of Tatfondbank and its satellites, as well as Ugra, shows that scale is not always the determining factor. Could the Central Bank try new rehabilitation mechanisms at Tatfondbank or Ugra? Theoretically he could, but he didn’t, obviously after weighing all the possible risks.

In my opinion, it also cannot be called a coincidence that the problems at Otkritie and B&N Bank surfaced right before the completion of the work on preparing new reorganization mechanisms. Such coincidences simply do not happen.

Does this increase the importance of the Central Bank? Of course, but it is worth recognizing that in the current situation, when even major players market, without funds from the Bank of Russia and manual control it is almost impossible to cope. Considering the fact that “saving drowning people” requires more and more funds, and the uncontrolled pumping of liquidity into the banking sector through sanators in the future is fraught with the emergence of problems that are much more high level, the regulator should not be blamed for its desire to independently manage its own funds.

Materials