On a private commercial bank Otkritie Financial Corporation The Central Bank will test a new soft bailout scheme. Physical clients of the bank, that is, ordinary citizens, will not feel any changes - the service is going on and will go on as before.
The Bank of Russia announced the start of procedures for the rehabilitation (sanation) of Otkritie on August 29. The Central Bank sent money from the Banking Sector Consolidation Fund to the capital of a bank in need of assistance. Gradually, the share of the Central Bank in the capital of Otkritie will reach 75% or more.
It is expected that the recovery of the bank will take 6-9 months. In the meantime, the Central Bank has appointed a new leader for the "Discovery" - the current head of VTB 24 Mikhail Zadornov. The economist, who will officially take office in 2018, is already developing a successful business model for Otkritie.
This commercial Bank large enough - 6th place in terms of the volume of attracted funds from the population (573.8 billion rubles) in order to prevent its bankruptcy and panic among depositors. The news that the Central Bank will be the main shareholder, undoubtedly, reassured clients - this is a strong guarantee of the safety of deposits.
The outflow of deposits from the bank first stopped, and then a steady influx of deposits into Otkritie began. The Central Bank will not stop helping Otkritie until the forecasts are stable.
We are not talking about any banking crisis now. On the contrary, the Central Bank now has more funds to help than before. In 2014, the volume of refinancing reached 9 trillion rubles. Now the banks jointly owe the Central Bank less than 2 trillion.
Usually, after reorganization, banks are sold to shareholders. Will the Central Bank sell Otkritie? FC Otkritie is a large corporation that itself was engaged in the rehabilitation of Trust Bank. Such a purchase is affordable only for state-owned banks of the scale of Sberbank and VTB. And this fact suggests that the "Discovery" can become a state. In addition, when the bank's shareholders asked for reorganization, there were no other contenders except for the Central Bank.
The rescue of Otkritie is a sign that the Central Bank prefers stability and strives for it.
About measures to increase financial stability PJSC Bank "Financial Corporation Otkritie". Now the Bank of Russia will become the main investor of the bank, having invested in it the money of the Banking Sector Consolidation Fund. Prior to this, FC Otkritie was the largest private bank in the country.
“The implementation of measures to improve the financial stability of the Bank is carried out in cooperation with the current owners and managers of the Bank, which will ensure the continuity of its activities in the market banking services and subsequently take all necessary measures to further develop the Bank's activities,” the press service of the Central Bank of the Russian Federation emphasizes in a statement. According to the assurances of the Bank of Russia, Otkritie Bank will continue to operate as usual, fulfilling its obligations and making new transactions.
Technically, a new administration is being introduced into Otkritie, while it includes employees of the Bank of Russia and LLC UK FKBS. At the same time, the subsidiaries of the FC should also continue to work as usual: we are talking about the insurance company Rosgosstrakh, Trust Bank, Rosgosstrakh Bank, Rocketbank and Tochka Bank, as well as NPF Electric Power Industry, NPF "RGS", "Opening Broker".
FC Otkritie has been operating since 1992, until today it was the largest bank in the country with completely private capital, and occupies the 8th place in Russia in terms of assets
FC Otkritie has been operating since 1992, until now it has been the largest bank in the country with completely private capital, and occupies the 8th place in Russia in terms of assets. The bank has 22 branches across the country and more than 400 divisions.
P , as of August 1, 2017, the net assets of the bank - 2,323.87 billion rubles (8th place in Russia), capital (calculated in accordance with the requirements of the Central Bank of the Russian Federation) - 270.80 billion, loan portfolio- 1,094.11 billion, liabilities to the population - 538.98 billion. Problems with Otkritie Bank began a few months ago after it was assigned a low ACRA rating (BBB-), as well as after the license was revoked from Yugra Bank, as a result what customers started to take money.
“This news sounds scarier than it actually is. The term "interim administration" has recently been associated with tough actions on the part of the Central Bank and with the revocation of licenses. But not in this case. The Central Bank emphasizes that it actually undertakes to help Otkritie with the capital of the Banking Sector Consolidation Fund. This does not in any way mean that the bank is bankrupt or the license is revoked at the moment. On the contrary, now work will be carried out to save him. So I would recommend investors not to panic,” believes Aleksey Korenev, an analyst at Finam Group.
As a rule, panic and urgent measures to seize Money from banks to depositors against the backdrop of news about various difficulties only exacerbate the problems of financial institutions. In addition, FC Otkritie Bank is a participant in the deposit insurance program, which means that even under the worst-case scenario in a financial institution, the state Deposit Insurance Agency will reimburse depositors up to 1.4 million rubles.
In connection with the events in the banking sector in 2017, vigorously discussed in social networks and often mentioned in the media. Many people are wondering what bank reorganization is and what should Otkritie and Binbank depositors who fall under these actions do. What are the consequences of these actions for ordinary customers. Let's figure it out.
In medicine, rehabilitation means taking a number of therapeutic and preventive measures to improve the body. The same is true in the banking sector. Bank reorganization is aimed at maintaining and financial recovery. The procedure implies a complex of various processes and decisions, such as restructuring, restructuring accounts payable, reducing the number of workers, changing the range of products, carrying out and much more.
These and all other measures should help the bank avoid bankruptcy. To continue to work and earn income. Therefore, the founders and shareholders of the institution should be interested in the rehabilitation first of all. And they should be the first to carry out this procedure.
Reorganization can be carried out by the bank's shareholders, creditors or other persons interested in restoring the institution's solvency. But in what interest Central Bank Russia maintaining Binbank and Opening in 2017. And why exactly these, and not others, who need financial injections?
The rehabilitation process is strictly regulated by the law of the Russian Federation. Previously, the process was handled by the Deposit Insurance Agency, while the Central Bank only identified problem banks, determined the level of excess of debt over income and assets, allocated soft loan DIA at a preferential rate of 0.5%, and the Agency, in turn, has already issued a loan to the institution being rehabilitated at 0.51% per annum for a period for 10 years.
But since April 2017, the Bank of Russia has decided that this mechanism is no longer effective due to a decrease in inflation in the country. Due to the decrease lending rates The Central Bank decided that it was necessary to increase the sums for reorganization to cover the negative capital of the organization being reorganized. Under these conditions, it is more reasonable not to issue a loan, but to buy out a bank, namely shares and assets, up to 100% of the total capital of a financial institution. And this seems to be good, the problem organization is moving into state property , and this is a guarantee of reliability.
The main sources of income for the Bank of Russia are the issue of money, funds from the budget and funds from its own investment activity. If the Central Bank wants to save any troubled bank, it can simply print the required amount of money, as it happened with the Opening, the rehabilitation of which took about 300 billion rubles. The next in line for recovery is Binbank, which may need another 150 billion rubles.
After buying out problematic financial institutions some kind of changes will take place in them, aimed at improving financial situation. After that, it can be put up for sale. VTB Group may become one of the possible buyers.
Why engage in reorganization of troubled banks, if you can simply revoke their license and distribute funds to investors, who will find where to place them. Why print money, endure additional expenses, why spend time and effort on recovery?
Depositors of Otkritie and Binbank banks need to understand the following:
The bad point is printing a large amount of money that will not go to the development of the economy. This can push up inflation and cause prices to rise. Public administration can also be a negative point. As you know, not all state-owned enterprises operate efficiently and achieve great financial success.
In the near future, depositors of Otkritie and Binbank banks that are subject to reorganization have nothing to fear. During the transition period and the start government controlled nothing bad will happen. History knows many cases of the transition of financial institutions to state ownership. Most of them ended well.
The strategy, the not entirely successful reorganization of the NB Trust and the purchase of Rosgosstrakh, led to the need to save the Otkritie FC bank, representatives of the Central Bank said.
Rosgosstrakh has become a trigger that hastened the need to decide the fate of the bank,” said Dmitry Tulin, First Deputy Chairman of the Bank of Russia.
The second reason was voiced by Deputy Chairman of the Central Bank Vasily Pozdyshev. “The not-so-successful reorganization of Trust Bank also became a trigger,” he specified. As a result, he added, without further support, the bank cannot move on. According to the Bank of Russia , the outflow of client funds in August (August 3-24) amounted to 389 billion rubles of legal moneypersons, 139 billion - funds of individuals persons.
The current situation was determined “by the business strategy itself: mergers and acquisitions at the expense of borrowed funds,” say representatives of the Bank of Russia. As Tulin noted, the problems were identified in the autumn and the Central Bank intended to seek, in particular, to reduce the volume of operations.
According to Tulin, the bank's owners applied to the Central Bank themselves. “The owners of the bank realized that they would have to admit the fact of a decrease in regulatory capital both to auditors and to rating agencies, he explained. - The bank's capital, published in the statements, apparently, was significantly overestimated.
At the same time, representatives of the Bank of Russia did not describe in detail how the bank came to the current situation. They also refused to provide figures characterizing the scale of the disaster and the required amount of support. “We will not give a description of the details and specific operations, there are many questions. This is a very interesting phenomenon - FC Otkritie bank, - Tulin said. According to him, the size of the "hole" in the bank's capital will be determined by the interim administration.
The Central Bank does not expect a noticeable effect for the market from the reorganization of Otkritie. “If we were talking about the revocation of a license or a moratorium on meeting requirements, then there would be risks for the sector, and now we are talking about a significant increase in the financial stability of the bank. We do not expect any shocks in the banking sector in the foreseeable future,” Tulin said.
Bank FC Otkritie
PJSC "Bank" FC Otkritie "- a large universal bank with a well-developed network of subdivisions. Focused primarily on comprehensive service and lending to both corporate and private clients. In addition, he is active in the field investment services and operations in the precious metals market. Since August 29, 2017, the Bank of Russia has been the main investor of the credit institution. A temporary administration was appointed to the bank, which included employees of the Central Bank and the Management Company "Banking Sector Consolidation Fund". From December 21, 2017, the execution of the functions of the temporary administration for the management of the bank, assigned to the FCBS, was terminated. On December 11, 2017, the Bank of Russia officially became the owner of over 99.9% of the shares of FC Otkritie Bank. On January 1, 2019, the official merger of FC Otkritie Bank and Binbank took place. United credit organisation will operate under the Otkritie brand and licensed by FC Otkritie.
According to Banki.ru, as of April 1, 2019, the bank's net assets amounted to 2,134.09 billion rubles (8th place in Russia), capital (calculated in accordance with the requirements of the Central Bank of the Russian Federation) - 310.44 billion, loan portfolio - 891.33 billion, liabilities to the population - 828.91 billion.
National Bank "Trust"
PJSC Bank Trust is a large credit institution with a wide branch network. Currently undergoing a financial recovery procedure with the participation of the Central Bank. Since March 15, 2018, the functions of the temporary administration for managing the bank have been fully entrusted to the UK FKBS. Since May 14, 2018, more than 99.9% of the bank's shares have been owned by the Central Bank of the Russian Federation. At the moment, a platform for the consolidation of non-core assets is being formed on the basis of the bank (including as part of the merger of Rost Bank JSC). The bank plans to work with distressed and non-core assets, their subsequent sale in order to return part of the funds.
According to Banki.ru, as of April 1, 2019, the bank's net assets amounted to 1,321.98 billion rubles (11th place in Russia), capital (calculated in accordance with the requirements of the Central Bank of the Russian Federation) - -1,261.07 billion, credit portfolio - 905.49 billion, liabilities to the population - 4.30 billion.
Rosgosstrakh (IC PAO)
PJSC IC "Rosgosstrakh" is a universal company, the parent company in the structure of the largest Russian insurance group "Rosgosstrakh". In 2017, the company ranked sixth in the insurance market Russian Federation in terms of collected premiums and second place in terms of collections in the OSAGO segment. In the structure of the insurance portfolio at the end of 2017, the most significant shares fall on OSAGO (39.34%), comprehensive insurance (22.03%), property insurance of citizens (20.6%). The company has more than 2000 offices in 85 regions of the country, the head office is located in Moscow. Until the end of 2016, it was controlled by the Khachaturov brothers. In 2017, PJSC IC Rosgosstrakh came under the control of FC Otkritie Bank, the main investor of which was the Bank of Russia in August.
Rumors about the serious problems of FC Otkritie Bank due to its aggressive growth policy through mergers and acquisitions have been fully confirmed. It passes under the control of the Central Bank, which then becomes the main shareholder. As it turned out, the Bank of Russia paid attention to the situation in FC Otkritie a year ago. Probably, the project of the Banking Sector Consolidation Fund, announced just then, was originally intended to save one of the largest private banks in Russia.
The fact that FC Otkritie required extraordinary support measures was announced by the Central Bank on the evening of August 29. A temporary administration has been introduced in the bank to examine the financial situation, measures to prevent bankruptcy will be implemented by the recently created Central Bank Banking Sector Consolidation Fund. Together with FC Otkritie, the organizations belonging to its group, including IC Rosgosstrakh, Bank Trust (under rehabilitation at FC Otkritie), four non-state pension fund, Otkritie Broker, Tochka and Rocketbank projects.
FC Otkritie ranks eighth in Russia in terms of assets, second among private banks. The volume of funds of citizens - 467 billion rubles. The largest beneficiary is Vadim Belyaev (17.98% of voting shares), among the shareholders are the financier Ruben Aganbegyan, the president of LUKOIL Vagit Alekperov and a member of the board of directors of the company Leonid Fedun, Alexander Nesis, Alexei Gudaitis, Nikolai Dobrinov from the ICT group, VTB (5.51% ), Rosgosstrakh (3.75%), businessmen Mikhail Parinov and Alexander Mamut.
Contrary to established practice, the regulator does not talk about the need for emergency intervention in the work of FC Otkritie. Representatives of the Central Bank refuse to even indicate the scale of the bank's problems and the possible amount of financial support it needs. In addition, in an official statement, the regulator indicated that the recovery will take place with the participation of the main owners and managers of FC Otkritie, although usually in such situations both of them are immediately removed from managing the problem bank. Also, contrary to custom, the Central Bank this time did not announce a temporary moratorium on satisfying creditors' claims. Customers continue to withdraw deposits from the bank. In less than two months, legal entities have already taken 389 billion rubles from FC Otkritie, and citizens (mainly VIP clients) - 139 billion rubles.
At the same time, the Central Bank acknowledged that the problems of FC Otkritie were known last fall, and the transfer of the bank to the rehabilitation fund had been discussed since the beginning of 2017. According to the first deputy chairman of the Central Bank, Dmitry Tulin, the problems in the bank led to its high-risk business model, expressed in aggressive growth through mergers and acquisitions at the expense of borrowed funds. “The Otkritie group was growing rapidly, and the capital was insufficient compared to the risks taken,” Mr. Tulin admitted. “The shareholders themselves asked the Central Bank to apply such a scheme.” According to him, the trigger was the bank's acquisition of the troubled insurer Rosgosstrakh, which he "couldn't digest."
In Rosgosstrakh, however, they categorically disagree that they are to blame for the problems of FC Otkritie. “It would be more correct to say that the problems in the OSAGO market have become one of the factors in obtaining an investor in the form of the Central Bank,” said the interlocutor of Kommersant, close to the company. In 2017, the bank financed the insurer for 40 billion rubles, the net loss of Rosgosstrakh under IFRS in 2016 amounted to 33 billion rubles. (see Kommersant dated August 18). A Kommersant source close to the company's management assured that the reorganization of FC Otkritie will not affect the completion of the deal to acquire Rosgosstrakh.
FC Otkritie will be the first project of the Banking Sector Consolidation Fund. Using his example, it will be possible to evaluate the real pros and cons of a new scheme for rehabilitating banks - cash injections into capital instead of loans.
Upon completion of the interim administration, the Central Bank will receive at least 75% of the bank's shares, and the current owners will be able to keep 25%, or may lose them if it turns out that its capital is negative.
Experts call the transfer of FC Otkritie to the fund the best possible solution. “The bail-in mechanism (rescue at the expense of the largest creditors) in this case would be dangerous. If bail-in was applied, they would suffer financial losses or corporate clients. There could be a domino effect, since the bank is very large,” says Raiffeisenbank analyst Denis Poryvay. But the lack of clear explanations from the Bank of Russia raises questions. “In the release of the Central Bank there is a link to the article of the law “On Bankruptcy”, which indicates seven grounds for the introduction of an interim administration. However, the Central Bank does not write anywhere exactly on what basis it made this decision,” explains Iontsev, Lyakhovsky and Partners partner Igor Dubov.
Who will oversee the recovery process of FC Otkritie has not yet been fully decided. According to Kommersant's sources, the Central Bank sees the current head of VTB 24, Mikhail Zadornov, as the main candidate for the position of anti-crisis manager (see Kommersant dated August 28). He himself does not comment on this issue, and VTB categorically refutes the possible departure of a top manager. Mr. Tulin only assured that "there are worthy candidates from among well-known career bank managers who are ready to take top management positions in the bank after completing the necessary procedures."
Yulia Polyakova, Svetlana Samuseva, Tatiana Grishina
