SLIDES, 8 February. /TASS/. The head of the Agency for Deposit insurance (DIA) Yuri Isaev considers that the procedure of bail-in (conversion of creditors of the third turn in subordinated debt or share capital of the Bank – approx.ed.) should not apply to individuals. This opinion he expressed to journalists before the meeting, Prime Minister Dmitry Medvedev on the development of the Russian banking sector.
The Ministry of Finance: the size of deposits of individuals, involved in the mechanism of bail-in may not be reduced
“Our position is that you do not have individuals in this case. But the idea of bail-in from the point of view of participation of legal entities in the procedure – it is very common,” said Isaev.
He explained that the involvement of citizens in this procedure has little economic sense, since, according to statistics, banks with revoked license for the last time, the share of deposits of physical persons for the sum over 100 million roubles was low.
“The man with 100 million roubles different from a person with 98 million rubles from the point of view of the Constitution? I looked at the statistics on individuals – so, we have individuals who have a Deposit more than 100 million rubles in banks whose licenses were revoked from the moment introduced 1.4 million rubles (insurance coverage of deposits – approx.ed.), a little more than 100 people”, – said the head of the DIA.
The mechanism of bail-in has not been used yet in Russia. Previously Deputy Chairman of the CBR Mikhail Sukhov reported that the Bank of Russia expects in 2016 to enable bail-in to solve the problems of unstable banks.
Initially it was about the application of this mechanism only in respect of legal persons, but in late January, Deputy Finance Minister Alexei Moiseyev said that the discussion and the possibility of its use as additional compensation for large depositors. According to him, the threshold size of deposits of natural persons that may be converted into shares on the new mechanism of solving problems of unstable banks bail-in is not defined yet. But the amount really can be less than 100 million rubles, said the Deputy Minister.
According to the forecast of the Ministry of Finance, the system of bail-in can earn not earlier than mid-2017.
The banking system of the Russian Federation in 2015. Dossier