Reorganization of insurers, pension funds and financial infrastructure approved in the fall


Idea to sanitize not only banks but also other financial institutions are very close to implementation. The Bank of Russia plans to make appropriate amendments to the laws for consideration during the autumn session of the state Duma. Participants of the market warn about the growing conflict of interests of the Bank in the event megasale

What will happen

Amendments to legislation introducing a resolution mechanism for insurance companies and other financial market participants, the Central Bank of the Russian Federation proposes to submit for consideration in the autumn session of the state Duma, has informed Agency “Interfax” with reference to the speech of the Chairman of the Bank Vladimir Chistochina at the International legal forum in St. Petersburg.

“When we are faced with the instability of the same credit institutions often see that they are members of large financial groups. The question of instability applies not only to banks but also to other team members. It could be insurance companies, and pension funds, and some professional participants of the securities market. Of course, in this sense, it would be more correct to apply a common resolution mechanism to the whole group if we believe that the group is worthy to sanitize”, — quotes “Interfax” Chistochina.

There

Now the process of rehabilitation (rehabilitation at the expense of the Central Bank and investors) spelled out in the bankruptcy law only against the banks. As a result, in practice, the Russian finrynka there were cases when the Bank participants in the financial group of the Bank were saved, and non-Bank rehabilitation at the expense of public funds was not subject regardless of this testimony.

As an example, when the reorganization of the non-banking financial market participants could really come in handy might be the case of group “URALSIB”, indicate market participants. Assets of the insurance company “URALSIB” was problematic, but salvation by law, at the expense of the Central Bank was subject only to the Bank (the turnaround “URALSIB” Vladimir Kogan got to rescue the Bank 81 bn). To improve the financial condition of the insurer, the new owners are doing on their own.

Someone important

The potential rehabilitation of insurers, the special interest of the Central Bank. “First of all I’m talking about insurance companies”, — said Vladimir Chistyukhin.

The desire of the Central Bank legislation to introduce a recapitalisation, in particular insurers, not surprisingly. At the end of last year it became known about the plans for the transfer of control over who became troubled insurer “Rosgosstrakh” financial Corporation “Opening”. As reported by the then RBC, financial market participants have interpreted this move as a covert reorganization. In their comments they did not exclude that the transaction can carry forced to “Rosgosstrakh” in a difficult financial situation due to loss of CTP segment where he is the biggest player.

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