Moscow. September 21. INTERFAX.RU – the principal owner of Binbank, which will be sanitized by the Bank of Russia, Mikail Shishkhanov has recognized that the business model of the credit organization was overly aggressive and only worked on a growing or stable market.
“I guess she was a little aggressive, and this model worked still in a growing market, or at least stable, but not falling. Happened what happened, the market began to fall, realized business risk, and I as the owner got into this business risk,” Shishkhanov said in an interview with TV channel “Russia 24”.
B & n was not able to “digest” the problematic accession of MDM Bank, which was acquired in 2015. “The key cause (problems if) is MDM. I didn’t expect MDM such bad assets. From MDM in times was worse portfolio than it was. It was a falling market in a falling market it is difficult to imagine how a further portfolio lead,” – said the banker.
Central Bank on Thursday morning announced a reorganization of the Bank and the growth of the Bank through the Fund’s consolidation of the banking sector. The controller uses the same scheme as the first rehabilitation through the Foundation of the Bank “FC Opening” – of the Central Bank becomes the main investor, the moratorium on satisfaction of requirements of creditors is entered, the mechanism of bail-in is not applicable.
He suggested that the healing process can take from 3 to 6 or 8 months (same evaluations were informed by the period of readjustment “Open” – if). “It’s complicated, hard work. I shall strive, by all possible means to support it, to work 24 hours and provide a process that the Central Bank was comfortable in this,” he added.
According to him, the Bank in the process of recovery will conduct its operations as efficiently as possible, if necessary, to sell the assets.
“The support team is the current team of the Bank, predpravleniya (recently appointed Eugene Davidovich – if), all the guys on the ground. My goal is to motivate all to continue working together with the Central Bank. I can handle it. The Bank also continues to work, the members of the interim administration sit down and from the point of view of risk acceptance limit, otherwise the Bank is not changing its work,” – said Shishkhanov.
He added that gradually sold minority stakes in some assets to replenish the capital of the Bank (the last time the Bank was capitalized in December 2016 in the amount of about $200 million). However, in February 2017, the banker realized that their own funds for continued support of the credit organization it is not enough, and began to negotiate with the Bank.
According to shishkhanova have Joined a very large portfolio associated with the construction industry, including assets in the possession.
Example Of “Open”
Nervousness, the market came after the situation with the Bank “FC Opening”, added the banker. “We began to realize that we can let down our customers, our investors including our lenders and our borrowers. We have an active credit line, the company credited and we need to continue to lend to them, to prevent them default. They asked… I realized that the situation could become critical, in fact, I decided to go to the Bank to assist in the health of our banking group on the new law through the Fund for rehabilitation,” – said Shishkhanov.
“What I saw, the way it happens in “Open” – all in a civilized manner, the Bank continues to work”, – said the financier. He added that the “pioneers” there’s always mishaps, but in the end, “Central Bank behaves very logical and very professional.”
“I am absolutely calm, genuinely understand that it’s probably the right decision at the time. Of course, like any banker and any owner, I would like to the last pull, but I guess I failed those people who trusted the Bank,” – said Shishkhanov. He expressed the hope that these customers will continue to work with the credit institution. “My task now is to organize so-called process of transition,” he added.
On Thursday, the Bank of Russia announced the introduction of the Bank and Increase the Bank temporary administration, which included employees of the Bank of Russia and Fund management company consolidation.
Earlier it was reported that the top management of the Bank during the year discussed with the regulator possible way out of the situation. Not finding the possible recapitalization of the Bank at the expense of own funds and the results of the analysis of the problems of the Bank, its main owner Mikhail Shishkhanov turned to CBS asking about rehabilitation.
It is expected that he will again lead the Board of Directors of the credit institution. Together with CBR, he plans to pursue financial recovery of the Bank and the growth of the Bank.
The Bank’s outstanding 13 issues of exchange bonds maturing in 2020, 2021 and 2025, and Eurobonds for $150 million maturing in 2019.
B & n Bank for the first half of 2017 took 12 th place in terms of assets ($1 trillion 123 billion rubles) in the ranking “Interfax-100” prepared “Interfax-CEA”, and ranked seventh in the size of deposits (553 billion).