In Russia there is a state deposit insurance system. The safety of individuals' funds deposited in Russian banks is protected by a specially created Agency. There are certain rules by which the Deposit Insurance Agency (DIA) operates. Let's look at what exactly it offers investors.
What does the deposit insurance system provide?
With the help of the DIA, depositors can return up to 700 thousand rubles that were placed in a bank that lost its license, for example, due to a risky credit policy. The presence of such insurance allows the bank itself to assert that placing temporarily free funds in it is reliable. For the state, such a system of protecting the interests of clients makes it possible to reduce social tensions and shift the costs of compensating depositors’ losses onto the participants in the banking sector themselves.
How do banks interact with DIA?
Financial institutions regularly pay contributions to the deposit insurance system, through which a fund of guaranteed payments is formed. This matter is strictly voluntary, that is, the banking structure independently decides whether to participate in the system of protecting client funds from itself, or to accept deposits without insurance. Every quarter, the Deposit Insurance Agency collects contributions from almost 900 banks, the amount of which depends on the volume of their deposit portfolio and reaches only 0.1% of its average value over the last 3 months. If an insured event occurs, clients of a participant in this system have the opportunity to receive a guaranteed return of part of their funds.
How does bankruptcy insurance work?
When the Central Bank revokes its license or makes a decision on liquidation or bankruptcy, the financial institution is obliged to distribute all money that does not belong to it and repay debts. But usually cash and other liquid assets are not enough to meet obligations. Banks put the money received from depositors into circulation and provide it in the form of loans to other clients. If this mechanism is stopped at once, borrowers cannot be forced to repay all debts ahead of schedule, but the bank is obliged to return their savings to depositors immediately.
The Deposit Insurance Agency guarantees the return of depositors' funds within a couple of weeks. Only amounts not exceeding 700 thousand rubles will be paid (the law on changing the amount of guaranteed compensation has not yet been adopted). The rest can be returned by “standing” in line with other creditors and waiting for the sale of all assets owned by the bank.
Under what conditions is compensation paid?
Not all clients of the closed bank can receive their money. Only individuals and individual entrepreneurs can count on guaranteed compensation, albeit in a limited amount. Moreover, within two weeks from the date of announcement of the insured event, money placed on the current accounts of individual entrepreneurs and cash deposits of private clients can be returned at the expense of the DIA. A number of deposit products are not subject to insurance, for example, unallocated metal accounts, certificates, bills and other securities.
In general, the amount paid by the DIA during the liquidation of one bank cannot exceed 700 thousand rubles in total from all open deposits and accounts. The same amount can be guaranteed to be returned in the future in the event of bankruptcy of another financial institution - a participant in the system, if you again unsuccessfully placed your savings.
Legal entities - bank clients do not have the opportunity to receive their money from a bank that was closed by order of the Central Bank of the Russian Federation. It is for this reason that there is a special list of reliable organizations where socially significant and budgetary enterprises are recommended to open accounts and store customer funds.
Introduction. General overview of activities
The Deposit Insurance Agency was created in January 2004 on the basis of the Federal Law of December 23, 2003 No. 177-FZ “On the insurance of deposits of individuals in banks of the Russian Federation”. The agency is vested with the following functions:
Ensuring the functioning of the deposit insurance system;
Carrying out the functions of a bankruptcy trustee (liquidator) of insolvent credit institutions;
Financial recovery (rehabilitation) of banks.
The agency maintains a register of participating banks, pays insurance compensation to depositors upon the occurrence of an insured event, and manages the compulsory deposit insurance fund (MDIF).
To forecast the Fund's fund flows, a methodology is used to assess the financial stability of the compulsory deposit insurance system, using statistical processing of bank reporting data, as well as historical data on their bankruptcies.
To assess the insurance risks of CERs on a quarterly basis, along with an econometric model, models are used that allow assessing the financial stability of banks based on information about their credit ratings, as well as current market quotes for securities issued by banks and expert assessments.
Investment of the Fund's assets is carried out on the principles of repayment, profitability and liquidity of the acquired assets. For the DIA, as for all other state corporations, the Government of the Russian Federation establishes the general procedure and conditions for investment, as well as the procedure and mechanisms for monitoring the investment of temporarily available funds.
The list of permitted assets for investing the Fund’s funds includes:
Government securities of the Russian Federation and constituent entities of the Russian Federation;
Bonds of Russian issuers;
Shares of Russian issuers created in the form of OJSC;
Mortgage securities of Russian issuers;
Securities of international financial organizations admitted for placement and (or) public circulation in the Russian Federation.
It is not permitted to invest the Fund's funds in deposits and securities of Russian credit institutions.
The structure of investments of the Mandatory Deposit Insurance Fund is determined annually by the Board of Directors of the DIA, taking into account the current and future conditions in the investment markets.
Insurance payment mechanism
If an insured event occurs in relation to a bank (its license to carry out banking operations is revoked), its depositor is paid monetary compensation - compensation for deposits in the amount of up to 700 thousand rubles. In case of liquidation of a bank (declaring it bankrupt), its settlements with the depositor in the part exceeding the specified payment are carried out later, during liquidation procedures (competitive proceedings) in the bank (if the bank has funds).
To receive compensation for deposits, a citizen must submit to the DIA (or an authorized agent bank) an application and an identification document (usually a passport). This can be done at any time from the date of the insured event until the completion of liquidation (bankruptcy proceedings) of the bank, which, as a rule, lasts two to three years. In exceptional cases, if there are good reasons, insurance compensation is also paid to persons who did not apply within these deadlines.
Payment of compensation is made directly to the DIA or through an authorized agent bank in accordance with the register of the bank’s obligations to depositors. Payments begin no later than 14 days from the date of the insured event. This period is necessary to receive information from the bank about deposits and organize settlements.
The average time for the actual start of payments is even shorter - 11.5 days. A gradual reduction in the start date of payments is a strategic guideline of the DIA, aimed at smoothing out the negative consequences of the occurrence of an insured event.
At the request of the depositor, payment can be made either in cash or by transferring funds to a bank account specified by the depositor.
Amount of insurance payments
In accordance with current legislation, compensation for deposits is paid to the depositor in the amount of 100 percent of the amount of deposits in the bank, but not more than 700 thousand rubles. Foreign currency deposits are recalculated at the Bank of Russia exchange rate on the date of the insured event.
When calculating the amount of insurance compensation, the amounts of the bank's counterclaims to the depositor are deducted from the total amount of deposits.
The amount of compensation in one bank cannot exceed 700 thousand rubles, even if the depositor keeps money in several accounts. However, if he has deposits in different banks, in each of them the maximum amount of compensation will be 700 thousand rubles.
The maximum amount of insurance compensation and the history of its increase:
During the operation of the DIA, as of April 2012, 120 insured events occurred. 330.6 thousand people applied for insurance compensation for a total amount of 59.5 billion rubles.
Register of participating banks of the CER
As of September 2012, 892 banks were participants in the CER:
There are 783 operating banks licensed to work with individuals;
There are 10 operating credit institutions that previously accepted deposits but have lost the right to attract funds from individuals;
Banks in the process of liquidation (bankruptcy proceedings) - 100
Sign “Deposits are insured. Deposit insurance system"
The participation of the bank in the compulsory deposit insurance system is evidenced by the sign “Deposit Insurance System” registered by the Agency. Deposits are insured."
The sign can be used by a bank participating in the deposit insurance system by placing it on the glass of operating cash desks, on information stands, at the entrance to the bank premises, on its ATMs, annual reports, on bank cards issued by the bank and other information media for clients.
The mark may be included in the forms of deposit/account agreements concluded with individuals, provided that the funds under these agreements are subject to insurance. The Bank also has the right to place the sign on its website on the Internet.
Bankruptcy proceedings (liquidation) of credit institutions
In accordance with the Federal Law of February 25, 1999 No. 40-FZ “On the Insolvency (Bankruptcy) of Credit Institutions”, the Federal Law of December 2, 1990 No. 395-1 “On Banks and Banking Activities” and the Federal Law of October 26, 2002 No. 127- Federal Law “On Insolvency (Bankruptcy)” The DIA performs the functions of a liquidator and bankruptcy manager of credit institutions.
The forced liquidation procedure is carried out at the request of the Bank of Russia on the basis of an arbitration court decision if the value of the property (assets) of a credit organization whose banking license has been revoked by the Bank of Russia is sufficient to fulfill its obligations to creditors and obligations to pay mandatory payments. If the property (assets) of a liquidated credit organization is not enough to satisfy the claims of creditors, then a bankruptcy procedure is introduced in relation to it on the basis of a decision of the arbitration court.
Appointment of DIA as bankruptcy trustee (liquidator)
The arbitration court appoints DIA as bankruptcy trustee (liquidator) in the following cases:
If the credit institution had a license from the Bank of Russia to attract funds on deposits with individuals;
In case of failure to submit to the arbitration court in the manner established by the Federal Law “On Insolvency (Bankruptcy)” for approval of the candidacy of a bankruptcy trustee - an individual, in the event of bankruptcy of credit institutions that did not have a license from the Bank of Russia to attract funds from citizens on deposits;
Upon the release or removal by an arbitration court of a bankruptcy trustee (liquidator) - an individual;
In case of bankruptcy of absent credit institutions-debtors.
Statistics of bankruptcy proceedings (liquidation) of credit institutions
As of September 2012, the functions of a bankruptcy trustee (liquidator) were carried out by the Agency in 116 credit institutions, of which: 114 were undergoing bankruptcy proceedings, 2 were undergoing forced liquidation. 71 liquidated banks are registered in Moscow and the Moscow region, 45 in other constituent entities of the Russian Federation. The number of creditors in liquidated banks as of this date exceeds 65 thousand. The volume of established claims of creditors in liquidated banks amounted to 279.8 billion rubles.
The average percentage of satisfaction of the claims of creditors of 93 banks in which bankruptcy proceedings were completed for the entire period of the Agency’s activities as of January 1, 2012 was 17%. In credit institutions for which bankruptcy proceedings were completed in 2011, creditors' claims were satisfied on average by 39.1%. At the same time, in three bankrupt credit institutions, the claims of creditors of all priority levels were satisfied in full.
Participants (shareholders) of seven out of fifteen credit institutions where liquidation procedures were completed in 2011, after full settlement with creditors, the remaining property was returned.
From the beginning of its activities until June 2012, as a corporate bankruptcy trustee (liquidator), the Agency carried out liquidation procedures in relation to 288 banks and fully completed them in 172 banks.
Tasks of bankruptcy proceedings (liquidation). Representatives of the bankruptcy manager. Information on the progress of liquidation of credit institutions
During bankruptcy proceedings (liquidation) of credit organizations, the Agency is engaged in:
Carrying out an inventory and assessment of the credit organization’s property by engaging an independent appraiser;
Ensuring the safety of the property of the liquidated credit organization;
Establishing the requirements of creditors and maintaining their register;
Formation of the bankruptcy estate;
Carrying out settlements with creditors of a credit institution;
Identification of signs of deliberate and fictitious bankruptcy, as well as circumstances of bankruptcy of a credit organization, which are the basis for bringing the managers and/or founders of the liquidated credit organization to subsidiary liability.
The Agency exercises the powers of a bankruptcy trustee (liquidator) through representatives appointed by it from among its employees, acting on the basis of a power of attorney.
Legislation requires the Agency to regularly provide reports and other information on the progress of liquidation procedures to the Bank of Russia, the arbitration court and the meeting (committee) of creditors of a credit institution, including by publishing information messages about the progress of bankruptcy proceedings (liquidation) in the media.
The formation of a bankruptcy estate for settlements with bank creditors includes an analysis of the state of the property of the liquidated bank, an inventory of assets and determination of their market value through an independent assessment, collection from debtors of existing debt to the credit institution, as well as the organization and conduct of auctions of the property of the liquidated credit institution.
During bankruptcy proceedings (liquidation), the DIA identifies and challenges transactions concluded to the detriment of the property interests of banks and their creditors (dubious transactions), searches for and demands illegally retained bank property from third parties, declares refusal to execute contracts and other transactions of the credit organization, if the credit organization's execution of the specified transactions entails losses for the credit organization in comparison with similar transactions made under comparable circumstances, and also, if there are grounds, takes actions to bring civil and criminal liability to persons responsible for bringing the credit organization to bankruptcy.
Financial rehabilitation (rehabilitation) of banks
Instruments for financial recovery (rehabilitation)
A procedure was applied to three banks for transferring part of their property and all obligations to individuals under bank deposit/account agreements to financially healthy acquiring banks:
As of April 2012, the total amount of financing of measures for the financial rehabilitation of banks, taking into account the repayment of the principal debt (including assets acquired by the Agency or received to repay loans provided) amounts to 492 billion rubles, of which the Bank of Russia financed 345 billion rubles, due to the property contribution of the Russian Federation to the Agency - 147 billion rubles.
Management bodies and organizational structure of DIA
The agency's governing bodies are the board of directors, the management board and the general director. The highest governing body of the DIA is the Board of Directors, which includes seven representatives of the Government of the Russian Federation, five representatives of the Bank of Russia and the General Director of the Agency. Personal composition of the board of directors:
| Full name | Job title |
|---|---|
| Siluanov Anton Germanovich | Minister of Finance of the Russian Federation, Chairman of the Board of Directors |
| Golubev Sergey Alexandrovich | Deputy Chairman of the Bank of Russia - Director of the Legal Department |
| Lukov Vladimir Valentinovich | Deputy Director of the Department of Financial Policy of the Ministry of Finance of Russia, since 2011 - Professor at the International University in Moscow |
| Nikishin Andrey Viktorovich | Deputy Head of the Department of Foreign Economic Policy of the Expert Directorate of the President of the Russian Federation |
| Popova Anna Vladislavovna | Deputy Chief of Staff of the Government of the Russian Federation |
| Savatyugin Alexey Lvovich | Deputy Minister of Finance of the Russian Federation |
| Safronov Vladimir Alekseevich | Head of the Main Inspectorate of Credit Institutions of the Bank of Russia |
| Simanovsky Alexey Yurievich | First Deputy Chairman of the Bank of Russia |
| Skripichnikov Dmitry Valerievich | Deputy Director of the Department of Innovative Development and Corporate Governance of the Ministry of Economic Development of the Russian Federation |
| Sukhov Mikhail Igorevich | Deputy Chairman of the Bank of Russia |
| Turbanov Alexander Vladimirovich | General Director of the State Corporation "Deposit Insurance Agency" |
| Yankov Kirill Vadimovich | Deputy Head of the Federal Tax Service (until January 2012) |
The organizational structure of the Agency includes:
In the last decade, the interest of Russian society in the operation of the deposit insurance system (DIS) as an important part of financial stability has increased significantly. Awareness of Russian residents increased from 30% in 2008 to 90% in 2014. The state corporation, the Deposit Insurance Agency (DIA), which was created in 2004, is responsible for providing CICs. The Russian leadership pursues a rather strict policy in terms of protecting the interests of depositors. Since 2015, the amount of insurance payments has been increased from 700 thousand rubles to 1.4 million. What does this organization do and where are the funds for insurance placed? What regulations regulate its activities and is it possible to expand its functions? What structure does the DIA have and who manages the Agency? Answers to these pressing questions can be found in this article.
The main task of the DIA
The main purpose of the DIA is to insure deposit accounts of depositors. Only banks participating in the deposit insurance system have the right to work with private deposits. Deposits are considered as insured from the moment the banking institution is included in the register of banks. All money placed in the accounts of both citizens and individual entrepreneurs outside the formation of a legal entity is insured. The exceptions are:
- Trusted accounts;
- Metal impersonal deposits;
- Accounts of notaries and lawyers opened due to the formation of a legal entity;
- Savings deposits to bearer;
- Money located in foreign branches of banking organizations;
- Prepaid bank cards and electronic money.
When placing deposits in these investment areas, their return will be extremely difficult in the event of bankruptcy of a banking organization. Metal impersonal accounts are not subject to insurance, since according to current legislation, only domestic and foreign currency can be used as funds. Precious metals and securities do not fall into this category.
Basics of activity
The DIA is the liquidator and bankruptcy manager of banking institutions. This activity is carried out in accordance with such regulations as Federal Law No. 395-1 of December 2, 1990 “On Banks and Banking Activities”, Federal Law No. 127 of October 26, 2002 “On Insolvency (Bankruptcy)”, as well as Federal Law No. 177 of 12/23/2003 “On deposit insurance.” As soon as the arbitration court has issued a ruling at the request of the Central Bank of Russia, the process of forced liquidation begins. This is permissible only if the following condition is met: the value of the bank’s assets with the revoked license allows it to fulfill its obligations and make the required payments. Otherwise, the bankruptcy procedure is launched. The agency becomes a bankruptcy trustee under the following circumstances:
- The financial organization held a license and attracted funds from citizens;
- The arbitration authority removed the bankruptcy trustee (individual);
- Bankruptcy of absent debtor banks;
- Absence of a candidacy for a liquidator (individual) in the event of bankruptcy of banking institutions that do not have a permitting license to operate with customer deposits.
In 2016, the DIA performed these functions in 281 liquidated financial institutions, with 109 facilities located in various regions of the country, and 172 located in the Moscow region and Moscow. As of August 26, 2016, the number of creditors was 327 thousand, the volume of their claims in monetary equivalent was 1 trillion rubles. By September 1, 2016, liquidation measures were carried out in 529 banks. All procedures were completed in 248 organizations. The DIA also carries out bankruptcy prevention (rehabilitation) of banks participating in the DIA. The entire process is controlled by the Bank of Russia. The financial rehabilitation of banking organizations is carried out through government funding, as well as funds from private investors. In 2008, the Russian authorities allocated 200 billion rubles to the Agency. It is allowed to use funds from the Bank of Russia and the Federal Fund for Social Protection.
Purpose of FOSV
The operation of the system is ensured thanks to funds placed in the Compulsory Deposit Insurance Fund (CDIF). Its reserve as of December 1, 2014 is 88.5 billion rubles, for the first half of 2016 - 38.2 billion rubles. After the Central Bank of Russia allocated 297 billion rubles, the affected depositors (262 thousand people) were given 217.5 billion rubles. At the same time, the amount of other cash receipts is extremely low - only 45.7 billion rubles. The main sources of TCO formation remain:
- Insurance premiums of financial institutions;
- Income from investments of temporarily free funds of the Federal Insurance Fund;
- Refund of funds to repay previously paid insurance compensations;
- Other income.
From August 1, 2015, a system of differentiated rates was legalized. The mandatory base rate for all banks is 0.1% of the calculation basis. In turn, the increased additional and additional rate is equal to 150% and 20%, respectively. Their use is justified only when the basic level of deposit profitability is exceeded by 3 and 2 points. The DIA has developed an entire risk analysis program that allows you to assess the sufficient filling of the Fund. All features of the functioning of the economy, important indicators for forecasting the economic and social development of the country are taken into account. Future cash receipts are calculated using the method of assessing the financial stability of the Fund. Static processing of reporting from banking organizations and information about past bankruptcies is used.
Quarterly assessment of insurance systemic risks is carried out through the use of an econometric model and tools that determine the financial stability of banks according to their ratings and information on the current market value of securities. All investment operations are conducted in accordance with the principles of repayment, profitability and rapid circulation of assets. It is not permitted to invest funds from the Compulsory Deposit Insurance Fund in the assets and accounts of Russian credit institutions. Information on the profitability of invested funds is reflected in the annual reports of the DIA. The structure of future investments of FOSV is determined by the board of directors, taking into account the current and future economic situation in the investment market.
Who runs the Agency?
Only people who do not belong to the category of state civil servants according to Federal Law No. 7 of January 12, 1996 “On Non-Profit Organizations” can manage the DIA. The powers of the highest management body of the state corporation include the formation of committees, the creation of commissions for preliminary preparation and consideration of various issues in the banking sector. The basis of the DIA structure is:
- General manager;
- Board;
- Board of Directors.
The General Director may serve for 5 years from the date of election. Removal from office is permitted only upon personal submission of an application for the desired release or in the event of non-compliance with Federal laws. The appointment is made by the board of directors. The candidacy is submitted by the Chairman of the Board of Directors 1 month before the end of the term of the DIA General Director. The Management Board is a collegial executive body that resolves operational issues within the framework of its powers. The main manager is the general director, who is included in its composition according to his position. Meetings are organized once every 2 weeks. The composition is elected for 5 years. If an employee's powers are terminated, this does not entail his dismissal.
The Board of Directors is the supreme management body. Organizes general supervision of the DIA’s activities, guarantees the solution of assigned tasks by making appropriate decisions. It consists of 13 members (5 employees of the Central Bank, 7 representatives of the Government of the Russian Federation, the general director). The following requirement applies to government representatives: it is prohibited to use information received about state-owned companies for their own interests. The council is responsible for both the numerical composition of the board and for the removal of their members.
Conclusion
The Deposit Insurance Agency is called upon to fulfill its main task - to insure the funds of bank depositors who risk losing money as a result of bankruptcy (revocation of license) of financial organizations. The DIA is endowed with extremely important powers: it can act as a financial manager, selling the assets of a liquidated organization or carry out measures to prevent bankruptcy. There are further prospects for expanding powers: a corresponding project has been under consideration since 2013. It is planned that the activities of the DIA will also extend to other participants in financial relations - non-state pension funds and insurance companies.
The overwhelming majority of citizens have no idea how the deposit insurance system (DIS) works, about the DIA, and also do not know about all the nuances relating to this activity.
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The DIA is a government organization whose purpose is to protect the population’s funds in credit institutions. If the bank fails, the money on deposit is returned to customers.
How does the SSV work?
SSV is a system for protecting finances held on deposits of private individuals through their insurance.
CER Parties:
- Depositors who place savings in bank accounts are beneficiaries.
- The insurer is DIA.
- Banks that have a license and, accordingly, have an agreement with the agency are the participants of the CER and the policyholders.
- The Bank of Russia is the body authorized to control the activities of the DIA.
- The Government of the Russian Federation exercises control over the activities of the deposit insurance system, taking an active part in this system.
If the moment of an insured event occurs, the DIA undertakes to guarantee to pay people their savings, regardless of the scale and number of such cases in general.
Principles of operation of the SSV
First of all, all banks that provide for the maintenance of accounts of individuals in their activities must be participants in the CER. In order to participate in the CER, banks need to have financial stability; for this purpose, the Central Bank of the Russian Federation is inspecting banks.
Participating banks undertake:
- Pay insurance premiums to the CER Fund; penalties are imposed for late contributions.
- Openly notify clients about the CER, the amount and procedure for payments in the event of liquidation.
- Have a list of obligations to deposit holders, as well as fulfill other requirements that are prescribed in the Law.
- Insurance claims have certain limitations.
- Payments must be made within a short time frame.
List of unprotected deposits and deposits subject to insurance
Only licensed banks can insure deposits. A list of such banks is available on the official website of the DIA. You need to know whether you can trust the bank in which the client decided to open a deposit. After all, in the event of liquidation, the dubious bank will not reimburse the funds.
Most deposits are insured by the DIA, but there is also a list that indicates those that remain unprotected.
The following investments are covered by insurance:
- Savings left for a certain period and at interest.
- Current accounts.
- Deposit on demand.
- Bank card accounts.
- Special accounts opened by entrepreneurs that were not previously covered by insurance payments.
- Funds of wards listed in the accounts of trustees and guardians.
- Money in escrow accounts.
But there is a list of deposits that are not protected from possible risks, among them:
- Bearer deposits (savings certificates).
- (OMS) – accounts on which precious metals are recorded.
- Bearer deposits.
- Funds in electronic wallet accounts.
- Deposits that are available in branches of Russian banks, but which are located abroad.
- Funds in trust management of the bank.
- Individual accounts opened by entrepreneurs before 2014.
- Specialized notary accounts.
Insurance of deposits of individuals
Initially, insurance of this kind appeared in America, and then this system was introduced in many countries, including Russia, where the DIA began its work in 2004.
Thanks to systematic deductions from participating banks, the insurance fund is replenished.
Previously, the amount that was subject to insurance had a limit of 700 thousand rubles, but now this value has doubled, amounting to 1.4 million rubles. This is the amount that is currently insured. The amount of these funds is guaranteed to be returned to citizens.
If banks do not fulfill their obligations, the client has the right to receive his funds, taking into account accrued interest.
TCO restrictions
These restrictions are that not all savings are covered by the Insurance Law; there are those that are unprotected in the situation if the bank can no longer carry out its activities for some reason. This also applies to the maximum coverage amount for deposits – 1.4 million rubles. Simply put, more than this value cannot be paid to bank clients upon the occurrence of insured events.
Payments upon license revocation
When a license is revoked, thanks to the formation of a CER in the country, clients are guaranteed to receive their financial resources that are on deposit in banks.
This is necessary in order to provide protection to ordinary depositors, thereby increasing the level of customer confidence in banks. Payments are made by the DIA.
Liquidation of insolvent credit institutions
The procedure for liquidation of an insolvent credit organization and bankruptcy is carried out if it is impossible to further fulfill financial obligations to creditors, as well as tax and other mandatory payments.
A credit institution is recognized as unable to continue its activities if it fails to fulfill its financial obligations within a period of up to two weeks from the time they arose.
A characteristic feature of the bankruptcy procedure is the direct participation of the regulator, that is, the Central Bank of Russia, in this process.
Sanitation
Rehabilitation, or otherwise the rehabilitation of banks, is necessary in order to prevent bankruptcy. Only if bankruptcy is avoided will this procedure be considered successfully completed.
Grounds that give the right to carry out the procedure:
- Non-compliance with capital adequacy standards established by the Bank of Russia.
- Repeated failure to fulfill monetary obligations to creditors over the past six months, failure to make payments due to a shortage of funds within three days from the date when payments were due.
- The risk of loss of solvency of a credit institution exceeded 10% in percentage terms.
- There is a decrease in the absolute value of capital by more than 20% compared to the maximum value achieved over the past year.
- The amount of capital for the reporting month became lower than the amount of authorized capital.
Bank resolution entails the following frequently used measures:
- Provision of monetary assistance to the bank by its participants or other persons.
- Changing the structure of the bank's assets and liabilities.
- Purchase of shares by DIA or financial assistance provided to investors who purchase shares in the amount of at least 75%.
- Carrying out changes in the organizational structure of the bank.
Insurance payment process
In the event of liquidation, the DIA undertakes to reimburse the bank's clients. In such a bank, temporary management is appointed. Within two weeks from the date of revocation of the license, the deposit insurance agency chooses where payments will be made. The client needs to contact the selected DIA bank with a certain list of documents.
It includes the following documents:
- An application for payment of a deposit, filled out in a special form.
- Identification document (passport). In case of change of passport data, supporting documents are required.
- If someone else will receive the deposit money, then a notarized power of attorney is also required.
After submitting an application with all the necessary documents within 3 days, the client has the right to receive a refund of the deposit, but 14 days must pass from the date of liquidation of the organization. Depositors have the right to immediately receive their funds in full if they do not exceed 1.4 million rubles. Deposits can be in different currencies.
In the event that the deposit amount was greater, the client, after receiving guaranteed compensation for the deposit, issues an additional claim for the remaining amount, which can be paid during the period until the end of the complete liquidation of the bank. This process can take several years.
The IC needs to compile a list of the credit institution’s property and sell the property. Only after this will the bank’s clients be paid out funds exceeding the established limit. After the agent has made payments, he provides a certificate of receipt of compensation.
Actions if you are not on the list for compensation
Situations may arise when clients who have deposits with a bank are not on the list for compensation. This can happen, for example, if the depositor opened a deposit several days before the bank’s license was revoked.
In this case, the client must contact the DIA directly with an application or certain credit organizations. In addition to the application, you must present an agreement concluded with the bank and receipt orders. After this, the Agency must conduct a review and make adjustments to the register. After verification, the DIA gives a written response to the applicant. It may also happen that the DIA will refuse, in which case it is necessary to go to court.
If the client does not agree with the amount paid, then the same procedure must be followed.
In order for investors to live in peace and not worry about their savings and savings, the state created the DIA corporation. About 830 banks are already part of this system, which in case of force majeure guarantees the payment of the entire investment. Let's take a closer look at what the Insurance Agency is and what its role is.
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What is it
The financial foundation of the CER is the compulsory insurance fund. Payments on deposits are made at the expense of this organization, as well as the costs of coordinating payments are compensated. The main source of fund formation is payments from depositors.
Any assets of individuals can be insured, except:
- Deposit accounts of lawyers and notaries;
- Bearer deposits;
- Accounts opened in branches of a particular bank abroad;
- Funds that were transferred to the bank for trust management;
- Electronic invoices.
Pension savings guarantee system
This is a special development of the state, which is being implemented in accordance with Federal Law No. 422.
The main goal of the system is to guarantee pension savings for individuals who form a funded pension in the Pension Fund or in any non-state pension fund that carries out compulsory pension insurance activities.
The funded part of the pension provision consists of:
- Employer payments for persons born in 1967 and younger;
- Payments under the co-financing program;
- Shares of funds aimed at compiling a funded pension that were taken from maternity capital;
- Dividends received from the deposit.
The guarantee of savings is provided by the corporation through the payment of mandatory compensation.
This occurs when one of the following cases is established:
- Revocation of a work permit from a non-state pension fund;
- Recognition of NPF as a debtor;
- Opening of bankruptcy proceedings against NPF;
- Insufficient funds on the day when pension payments are established to a person;
- Reducing the amount of the Pension Fund reserve below the minimum level established by the Government of the Russian Federation.
The State Corporation Deposit Insurance Agency provides guarantees for the payment of all funds reflected in the accumulative pension accounts of an individual, except for investment income. In this case, the amount of payments cannot be reduced and is guaranteed in full.
The main source of formation of the financial basis of the fund for guaranteeing pension savings is the guarantee contributions of NPFs, which are registered in the system for guaranteeing pension savings, and the Pension Fund of the Russian Federation.
Since 2015, the DIA has maintained a register of non-state pension funds.
Bank liquidation
According to Federal Law No. 40, Federal Law No. 395-1, Federal Law No. 127, the corporation manages bankruptcy procedures for financial organizations.
The court appoints the Agency as liquidator:
- Upon liquidation of a financial institution that had a license from the Central Bank of the Russian Federation to attract funds on deposits;
- In case of bankruptcy of debtor banks;
- If another liquidator is removed;
The goal of the agency as a liquidator is to ensure effective work in bankruptcy, strictly observing the rights and interests of creditors, banks, citizens and the state.