Reform of banking supervision in the Central Bank started with the actual resignation of the first Deputy Chairman Alexey Simanovsky (translated in the status of the Advisor) and care oversaw the licensing and financial recovery of the Deputy Chairman Mikhail Sukhov at the beginning of October. In the press release of the Central Bank of 3 October it was reported that “the new Department for the elimination and recovery of financial institutions” will be implemented “a common approach for all sectors of the financial market”. And October 5, the press service of the Bank informed the Agency “Interfax” that the first Chairman of the Central Bank Sergey Shvetsov will be responsible for licensing and financial recovery of all financial market participants, including banks. That the Central Bank plans to separate banking regulation and supervision unit licensing and financial rehabilitation, reported newspaper Vedomosti, citing its sources.
In other words, it was assumed that the Central Bank will be established a General division of rehabilitation all participants in the financial market. To oversee the direction was first Deputy Chairman Sergei Shvetsov, who until then was responsible for the regulation and supervision of non-Bank financial institutions.
However, after two months the plan has changed, know the sources . “The fact that now the law on bankruptcy reorganization is possible only in respect of banks and transfer its implementation to the people, still not having anything to do with this, felt it inappropriate,” says one source . In addition, in practice, willing to be responsible for such a complex — both in financial and in reputational terms — the direction how the Bank bailout, was not. “It is one thing to propose reforms, it’s another to implement them responsibly,” adds another interviewee .
Additional risks to the implementation of the original plan, the Central Bank contributes to the ongoing reform of the institution of the reorganization. In the summer the Bank of Russia announced the abandonment of the services of the Agency for Deposit insurance (DIA) and the transition from the granting of loans to reorganize to direct investments of assets of the Central Bank in the capital of troubled players through a specially created Fund, which will be specifically created UK. However, since the summer of this concept has undergone changes and currently it is not clear, with or without the help of the DIA will be a readjustment. “And if still no ASV, and the answer for the effectiveness of spending huge amounts of money have in the Bank the one who will oversee this area, — says one of the interlocutors . — However, given how difficult it breaks the current system, the attention of those who will oversee a new process of recovery will be much greater”.
In such a situation, it was decided to go the easy route and return in the reorganization of the banking supervision unit of the Central Bank — under the control of the first Deputy Chairman Dmitry Tulin. Tulin himself, as the interviewees were not asked about it, but did not give up. However, the problem with monitoring the Bank bailout is not a solution. What Department in the Bank Supervisory unit of Central Bank and what kind of people are doing it, and it is not clear. According to the charge of these issues in the CBA is now the Department for licensing and financial rehabilitation of credit institutions the Bank of Russia in the framework of the reform shall be dissolved.
In a press-service of the Bank of Russia declined to comment.
Experts and market participants believe the situation with the Bank bailout even natural. “First, nobody wants to take responsibility for the old, despite the fact that the President in his address to the Federal Assembly, in contrast, praised the Central Bank for clearing of the banking market. Second, it is possible that the depth of the problems banks still have not been studied, and in this sense, an indefinite amount of liability can be intimidating,” says Vice-President of FBK Alexey Terekhov. In addition, he continues, in the case of a reorganization of forces, the Central Bank remains the contradiction between its regulatory and Supervisory function and the function of health: “it Turns out that the controller, by evaluating the problems of a Bank in the amount allocated to sanitation, as would appreciates their own mistakes or flaws”. Do not forget about the risks of taking during rehabilitation decisions on dismissal of the former owners and implementation of the increasingly popular ideas of rehabilitation at the expense of creditors. “Sooner or later it may be challenged as seizure of property, including in court, and the responsibility for these potentially contestable decisions someone will have to bear,” he says. In such a situation, it naturally turns on one of the basic properties of any bureaucracy — the shifting of responsibility, concludes Terekhov.
In informal comments, the bankers show concern for the evolving situation. The head of the Bank of the top 10 noted that the period of “anarchy” weakens the supervision of the banking sector. “In addition, we observed variability in decisions of the regulator, still have not heard explanation in connection with what was announced reform of supervision,” — said the banker.
Market participants hope that in the foreseeable future the situation will become clearer. “The Central Bank will probably seek to put the reorganization under tight control, since it is believed that this work was not all smooth. In this direction, the Bank, in my opinion, will not retreat. Pause is more likely to be associated with the decision to change the mechanism of readjustment and possible responsible persons, the need to make the right personnel decisions”, — said the head of the Board of Directors of MDM Bank Oleg Vyugin. The main thing — that they are not much delayed. “Until the end of the year you can wait, then you must resolve the outstanding issues,” he concluded.