The bankruptcy of “URALSIB” could be a shock to the banking system of the Russian Federation


MOSCOW, November 4. /Corr. Rita Shpylivs’ka/. The Bank “URALSIB” having recent financial problems, thanks to the financial help the state avoid bankruptcy, which could come as a shock to the banking system, according to representatives of the regulator and experts.

Interview

To 27 to the assets of the Bank the country’s Central Bank found responsible investor in the person of businessman Vladimir Kogan, who will be engaged in financial improvement of the organization. The Central Bank also decided to provide financial assistance in the amount of 81 billion rubles in the form of two long-term loans from the Agency for Deposit insurance (DIA). The Bank itself stated that it continues operating in the normal mode.

“The scenario of bankruptcy of “URALSIB” we had not even considered. The scope of its activities, functional role and systemic importance demanded its preservation,” he said in an interview with the Deputy Chairman of the Central Bank Mikhail Sukhov.

The Central Bank stated that the dire financial position of the Bank was the result of impairment of certain assets, including land plots, while the funds provided by the previous owner Nikolay Tsvetkov, was not enough for the recovery of the Bank.

The right decision

The Central Bank has chosen the plan of financial rehabilitation of the Bank “URALSIB”, proposed by Kogan, who soon will own 82 percent of the shares of the credit institution. Credits the DIA according to the Central Bank will ensure the continuity of the Bank and take it out of the crisis.

Experts interviewed note that the regulator took the right decision, keeping “URALSIB”, which escaped the fate of 144 small and medium-sized banks have in 2014-2015 had its license revoked.

“This is good news, as the Bank “URALSIB” is one of the largest in the country. The bankruptcy of such a Bank would be a serious shock to the entire financial system and could significantly undermine confidence in banks”, – said the President of the Association of regional banks of Russia Anatoly Aksakov. “Credit organization in General had led a law-abiding activity, but it is obvious that the business model did not allow “URALSIB” to be tricostatum in the crisis,” he said.

The regulator did not identify evidence of fraudulent activity of owners of the Bank, noting that the current owner “Uralsiba” Nikolay Tsvetkov, indeed, tried to save the Bank, who had acute problems with capital adequacy.

Lead a fulfilling activity

Rumors about a possible reorganization of “URALSIB” or the Bank sell to a new investor went on the market for a long time. Among the possible Senatorov or customers of the Bank was called the largest banks in the country. In recent years the Bank has reduced the business and then turned offices, optimized the personnel, has shifted towards lending to small and medium businesses than big corporate. Nevertheless, the loss of the Bank in 2014 in the amount of 9.5 billion rubles in 6 times has exceeded the loss 2013.

The head of the banking Association expressed confidence that “URALSIB” in the current environment will be able to restore the business to full activity. “There are assets that allow him to get healthier and be sustainable credit institutions, and the arrival of such an experienced in the banking sector investor, such as Kogan, provides that “URALSIB” will continue to be strong private Bank”, – said Aksakov.

Agree with him Director of the banking Institute HSE Vasily Solodkov. “This is one of the systemic banks, while the us economy is not in the best condition, and the banking system all the more,” he said.

According to Sukhova, the change of the owner “Uralsiba” will happen in the near future, and a detailed plan of financial recovery, the new investors will have to submit to the regulator by 1 July 2016. As the implementation of the plan in the financial statements will reflect the real value of Bank assets.

“Concrete measures for the future of these assets, including non-core, will in this regard”, – said Sukhov.