Binbank is one of Russia’s largest banks. According to the Central Bank of the Russian Federation, it occupies the 12th place by assets. Its regional network comprises 11 branches and about 500 branches throughout Russia.
What happened to the Bank?
The Bank turned to the Bank of Russia with a request to consider the possibility of rehabilitation through the Fund’s consolidation of the banking sector (VCBS) 20 Sep. On the same day, the Central Bank’s request promptly reviewed and “adopted the decision on granting PJSC “Bank” of funds to maintain liquidity,” — said the press service of the Bank of Russia.
In connection with the reorganization, the main shareholder of the Bank Shishkhanov Mikail (owned 59.4% of the shares) decided to lead the Board of Directors.
Even before the Central Bank decided to maintain the Bank, he expressed the opinion that reorganization of the Bank is optimal for the depositors ‘ decision, and joint action of the Bank and the Central Bank will do all necessary to protect the interests of clients.
What are the benefits of rehabilitation through FBX?
Clients need to know that rehabilitated through FBX the Bank will continue to work as usual. The Central Bank will provide the Bank with financial support, ensuring continuity of its activities.
The Chairman of the Board of the Bank Evgeny Davydovich has already written on his page in Facebook that b & n continues to work in normal mode and performs all obligations to customers.
If the Central Bank revoked the Bank’s license, as happened before with other credit institutions experiencing problems, the Bank would have stopped its work operations were not carried out, the money wasn’t issued. To their money people could only through the Deposit insurance system, and not more than 1,4 million roubles.
The Foundation of consolidation of the banking sector was created in may 2017. Through the Fund, the Central Bank may sanitize the troubled banks through recapitalization. After the reorganization, the regulator needs to sell the Bank to a new owner at a public auction.
For the first time the procedure of recovery using FBX applied in August 2017 in respect of the Bank “Opening”. After the announcement of rehabilitation of the “Discovery” of continued work in normal mode, fulfilling all obligations. The moratorium on satisfaction of creditors were not introduced.
Was aware of the problems of the Bank?
Market participants warned about the problems of the Bank. So, on August 16, the newspaper “Vedomosti” reported that the management company “Alfa Capital” the letter warned their customers about the problems arising from four Russian banks included into the top 15. B & n was in the list.
“We continue to receive more and more public and non-public information about the problems in the whole group of banks. …There is a high probability that the situation around them may be resolved this fall,” the newspaper quoted the letter analyst who advised the clients of these credit institutions to transfer the assets to a more reliable participants in the banking system of the Russian Federation.
After the publication of the criminal code “Alfa Capital” issued a release, saying that the statement about the difficulties of four banks is “private opinion of the particular analyst, the employee is not the official position of the company and is not carried out within the framework of any formal mailings to customers”.
Later the criminal code “Alfa Capital” withdrew the letter from his analyst, and his statements completely disavowed.
What led to the problems of the Bank?
Cause of problems of the Bank could become too aggressive growth. In 2013 the Bank started the accession process of other credit institutions, in particular Bashinvestbank (joined the Bank in 2013), Murmansk DNB Bank (2014), Uralprivatbank (2015).
In addition, in 2014 the CBR has chosen the Bank; the banking group “Growth” which included five banks.
In December 2015 holders of Binbank Mikhail Shishkhanov, Mikhail Gutseriev acquired a controlling stake in Moscow’s MDM Bank. In parallel, the Bank bought several pension funds.
As a result, the Bank’s assets from 1 January 2015 to 1 July 2017 rose more than doubled, from 400 billion to 1.1 trillion rubles. But a structure attached to the Bin, turned out to be problematic.
The main shareholder of the Bank Shishkhanov Mikail admitted that they were not calculated problems reorganized the Bank growth of the Bank and MDM.
“Earlier, I did not calculate the business of power: problems of the growth of the Bank, taken to reorganize, and MDM Bank were much more serious than expected in a falling market and the prevailing economic situation”, — he explained.
The Bank was actively attracting deposits and funded at the expense of their non-financial projects of the owners, says the Director for Bank ratings “Expert RA” Vladimir Teterin.
In August, the Bank, the outflow of funds of individuals and legal entities, follows from the statements Bank the company: individuals took 18.6 billion rubles (their contribution fell to 501 billion rubles), legal persons — 8.5 billion rubles (up to 121 billion rubles) despite the fact that state-owned companies have taken more than 15 billion rubles. 24.5 billion and decreased due to other banks in the accounts of the Bank up to 48.3 billion rubles.
How the situation will affect the banking sector?
B & n may not be latest credit organization, which appealed to the Central Bank, experts say.
There is a problem “tired owners” do not have sufficient resources and sometimes the will to maintain their company afloat, says Vice-President Moody’s Olga Ulyanova: “If the owner of the Bank is interested in cooperation with CB and he is confident that the credit institution’s balance sheet has deteriorated, not due to malice, and the result is accumulated during a crisis problem, then the owner may seek assistance from the Central Bank”.
An example of a Bank that, despite a significant size, in the official list of systemically important credit institutions is not included, may trigger the growth of such appeals, said Ulyanov: “on the other hand, it is unclear from what sources and in what amount will be implemented by the financial support of banks in case the Central Bank will go for this kind of steps. It is difficult to assess whether Central Bank coupled with just begun to function FCBS to accelerated developments in clearing the problems of the banking sector that have been accumulating for a long time. Earlier it was imagined that this process will last for a longer period of time and will be smoother”.
At the same time, the head of the Federal Antimonopoly service (FAS) Igor Artemyev has expressed the opinion that reorganization of the Bank “FC Opening” will not lead to destabilization of the banking sector of the Russian Federation.
“In Russia there is a real macroeconomic stability. The fall of the banks, for example, of the two, will not lead to serious increase in inflation or a serious destabilizing stories, he said. — It is important that the people who ran these banks, their activities were investigated to detect violations, if they were, and these people are punished”.