Moody’s and Fitch said about the risk of declining trust in the Tatar banks

A revocation of Tatfondbank will negatively affect the stability of the banking sector of Tatarstan, says a Bank analyst of the international rating Agency Moody’s Maria Malyukova. In an interview with “RIA Novosti” she suggested that the consequence will be the loss of confidence of customers in banks of the Republic.

“The revocation of the license of Tatfondbank significantly reduces customer confidence in the Republic’s banks since 40% of its shares belonged to companies associated with Tatarstan,” she said.

Tatfondbank is the second in the Republic Bank in terms of assets (the first — “AK bars”). In the Russian banking sector, the Bank was ranked the 42nd place. At the end of the third quarter of 2016 the amount of funds placed in the Bank by citizens exceeded $ 76 billion.

The Bank of Russia revoked the license of Tatfondbank on 3 March. As explained, the Central Bank, the Bank did not execute Federal laws regulating Bank activity, and statutory acts of the regulator. The Bank violated the standards of capital adequacy: the rate of Tatfondbank was on the level below 2% with a minimum of 8%. In addition, the share capital of the Bank was below the minimum value. In addition Tatfondbank lost the license, two more Tatar Bank Anchor Bank Bank. As noted, the Central Bank, sanitize and Bank Tatfondbank “on reasonable economic terms” was impossible due to the low quality of their assets.

Malyukova has in the opinion of Moody’s, now, probably, the question arises about the degree of support by the authorities of “AK Bars”, which may be lower than the market expected. “AK bars” — officially authorized Bank of the Republic, with much greater shares of government capital. The current situation could lead to further concerns of depositors of banks in Tatarstan and revision of the interbank lending limits on banks of the Republic of Tatarstan other banks”, — explained Malyukova.

That the revocation of the licences of three of the Tatar banks can cause instability in the regional banking sector, in an interview with told analysts of the international rating agencies Standard & Poors and Fitch. Says senior Director Fitch, Alexander Danilov, it may result in some outflow of funds from the Tatar banks or flows in large Federal banks. “In such a situation it is important to have a liquidity cushion against possible outflows. “AK Bars”, for example, a “cushion” of liquidity allows us to withstand the outflow of 20%, and that’s a significant margin,” he says. How the situation will develop in the future depends on coordination of further actions of the Central Bank, regional authorities and banks, concludes Daniel.

“The situation with the revocation of the license of Tatfondbank sensitive for the regional banks, — explained the analyst of Standard & poor’s Sergey Voronenko in conversation with . — The Central Bank gives a signal about the need to pay more attention to asset quality and liquidity management. In my opinion, in the near future, if there will be such a situation, the withdrawals will prevail over the recovery in the sector.”

About the risks for the Tatar banks say and the experts of the Russian rating agencies. “In the banking system of Tatarstan, many banks are closely linked, explains the analyst of “Expert RA” Marina Musiets. — How the Tatar banks lend to the same borrowers and sell to each other loans, we conclude that for these banks, in fact, are the same people.” According to Moninets, evidenced by today’s review of the license from two banks in the region, and the region between them was due much more credit institutions.

Analyst rating Agency “ACRA” Kirill Lukashuk is more optimistic, although he did not rule out strengthening the concern of investors and partial flow of funds in the state banks. “We do not expect that this flow will be massive, as well as some sort of mass crisis, because the regional banking system remains “AK bars”, which the [state] will be a bet. It is the authorized Bank to service budget operations. In addition, the problems of Tatfondbank has arisen not yesterday, and I doubt that today’s event was for clients an absolute surprise. A revocation of Tatfondbank, Interbanca and ANKOR Bank — in some sense a plus for the “AK Bars” from the point of view of its position in the region, as part of the customers of these banks, most likely, will go there,” he says.