Monday, February 20, the Bank of Russia has announced that it has introduced a temporary administration Agency on insurance of contributions (ASV) to two Tatar Bank “Soviet” and the timer Bank. Still have them sanitized Tatfondbank, but it really already the third month of a temporary administration of the Central Bank. Also Tuesday, a temporary administration of ASV was introduced in the troubled Bank “Peresvet”, for several months under the temporary administration of the Central Bank. No action in respect of Tatfondbank, the Central Bank on February 20 was not taken, therefore, in contrast to the three banks his fate remains in question.
According to the respondents of the banking market participants, the actions of the regulator indicate that it supports the reorganization of all three players. “Without the appointment of the temporary administration of ASV to start the reorganization or transfer of ongoing improvement another turnaround is not possible, the interim administration of the Central Bank there is no such authority, the only possible course of action according to the law,” explained a source close to the regulator. “The temporary administration of ASV aiming to evaluate the possibility and cost of fenestrulina, preparing the rehabilitation plan, looking for investors,” he said. Another source familiar with the situation in all three banks, specifies: “the New investors will provide two Tatar banks instead of Tatfondbank, which because of their plight no one, of course, sanitize incapable. Key potential investor for “Peresvet” — in the face of the world Bank — remains the same”.
The Bank of Russia confirmed the prospects of rehabilitation of two Tatar banks. “The Bank of Russia is considering the possibility of finding new investors for these credit institutions and continue their operation under control of the DIA,” — said the press service of the Central Bank in response to the request . In the DIA indicate that banks operate in normal mode. “Temporary administrations managing failed banks will be developed a complex of measures aimed at further maintenance of stable activity of banks”, — says the official report of the Agency.
The search for new investors for the Bank “Soviet” and the timer of the Bank shows that the cases of re-rehabilitation of troubled banks because of the collapse of their primary turnaround is gaining momentum, and are no longer isolated in the Russian market. Still re-cleaning was made only once — in Bank “Solidarity”, is initially at rehabilitation have lost in the year 2015, the licence of Probusinessbank. Now it sanitize Ivanovo OJSC “Zarubezhenergoproekt” jointly with CJSC JSCB “Kranbank”.
The increasing frequency of such cases poses not only a reputational risk (risk of incorrect evaluation and selection of motels), but the increase in the cost of rehabilitation of problem gamblers indicate the interlocutors in the banking market. In particular, after the transfer of the “Solidarity” of the new motels in addition to originally issued the loan in saving 6 billion rubles to rescue the Bank, the Central Bank was allocated a new loan ASV — 9.9 billion rubles.
Collector car in front of “Tatfondbank”. December 2016
Photo: Yegor Aleev / TASS
How much money will need to re-allocate the reorganization of the “Soviet” and the timer of the Bank, the interviewed experts estimate difficult. Originally collectively Tatfondbank on their recovery were 23 billion rubles with the promise of allocating additional RUB 4 billion in the case of aggravation of their problems. Usually the Bank-sanator provides the means reorganized the Bank, but he invests them in assets not immediately, but gradually, and places the unused balance on correspondent accounts at the nursing home or provide him of these funds interbank loan. “A large part of these funds could be placed in Tatfondbank, the viability and liquidity of assets which depends the future fate of these funds,” says S&P analyst Sergey Voronenko. “In the event of the failure of Bank’s turnaround at risk is the amount of funds received from rehabilitated player,” confirmed a source close to the regulator. According to analysts of Moody’s Milukova, Tatfondbank in the correspondent account could be more than 10 billion rubles from the Bank “Soviet”. To assess how much money is placed the timer Bank Tatfondbank, analysts found it difficult.
If Tatfondbank will be sanitized, new tools for improvement “Soviet” and the timer of the Bank may not need to: the money will be returned automatically at the end of the placement period in Tatfondbank. “If the license it will be revoked, means that hung in Tatfondbank, can be recovered only partially during the course of his bankruptcy or it will be impossible to return at all — if payments to depositors will exceed the “hole” in the balance of Tatfondbank”, — says the source . According to information in the autumn “hole” in the Bank was estimated at about 40 billion rubles. the Volume of deposits in Tatfondbank, according to his statements, 53 billion rubles. “Thus, likely to produce anything during the bankruptcy there, and the funds of the Central Bank will need to replace, allocating new money to the new sanator subject to a new assessment of the situation in the two re-rehabilitated banks,” — said the representative of one of the credit institutions with experience rehabilitation. He points out that the spread of the practice of re-rehabilitation reputation is extremely negative for the market.
The situation with the “Peresvet” is a bit better, but still depends on the consent of its major creditors to bail-in. Now the organization leads DIA. “One of the main tasks is carrying out a complex of measures aimed at reaching agreements with creditors of the Bank, with the purpose of conversion of cash of Bank liabilities to creditors of the subordinated debt securities of the Bank convertible into ordinary shares. The purchase of these bonds must be carried out up to 14 April, inclusive. Improving the financial stability of the Bank by purchasing the Bank’s creditors of its bonds is a necessary condition for making decisions on the financial health of the Bank providing financial assistance to the DIA to the Bank (this means the DIA receives from the Central Bank. — ). As a result of the acquisition of Bank bonds, the creditors will have the opportunity to promptly obtain a partial satisfaction of their claims against the Bank, as well as the opportunity to receive future returns from bonds,” — said in a press release from the Agency.
The placement of these bonds for a total amount of 125 billion roubles “Peresvet” began on February 14.
However, according to analysts, although with the advent in the Bank temporary administration of ASV chances of reorganization “Peresvet” has significantly grown, 100 percent guarantee of his salvation. “On the one hand, there is the example of the Bank “Tavrichesky” when the administration came from the DIA shortly before the publication of the final decision on the procedure of reorganization through bail-in. On the other hand, is still the major creditors of the Bank “Peresvet” not expressed support for the proposed mechanism of bail-in and, possible that in this way the regulator is pushing for an early creditors agreement”, — said the Director for Bank ratings “Expert RA” Stanislav Volkov. The representative of the Bank of Russia also pointed out this : “the decision does not mean that in relation to “Relight” a positive decision on the financial restructuring, providing financial assistance to the Bank by the Deposit insurance Agency. The issue of financial rehabilitation of the Bank the provision of financial assistance by the Deposit insurance Agency will be considered on the conversion results of the Bank’s creditors of their claims to the Bank in bonds of the Bank.”