The Bank of Russia allows for the participation of private investors in the procedure of bail-in (forced conversion of creditors of the third turn in subordinated debt or share capital of the Bank) to the rescue of distressed credit institutions. This was stated by first Deputy Chairman of Bank of Russia Alexey Simanovsky, reports “Interfax”.
“The Central Bank deals with this topic, working on it. In relation to individuals we believe that in principle, individuals could be members, but only in those cases when it is in their interests”, — said the representative of the regulator.
According to Simanovsky, the mechanism of bail-in can be advantageous, if the investors will receive the procedure more than upon liquidation of the Bank. “If it is beneficial for them, then it is possible. Question about the threshold figure is separate. In my view, still the lower threshold in the law should be”, — said the first Deputy Chairman of the Central Bank.
Last week, Deputy Finance Minister Alexei Moiseev has admitted that the conversion of private deposits can be spread over Bank deposits of 100 million rubles. thus he noted that the threshold value yet to be determined.