Deputy Finance Minister: the DIA will “bury” the banks and Fund the consolidation of “resurrect”

MOSCOW, August 30. /TASS/. Deputy Finance Minister Alexei Moiseev has compared the functions of the Agency on insurance of contributions (ASV) with the “funeral” of the banks, and the work created this summer, Fund the consolidation of the banking sector – with the “resurrection”. He declared it in interview to TV channel “Russia 24”, commenting on the decision of the Central Bank on the support of the Bank “FC Opening” at the expense of the Fund.

“DIA will do the “burial party”, and the Foundation, conversely, will be “a resurrection of the fallen.” And this is the fundamental difference from the Deposit insurance Fund, although the DIA under the same law, came under the control of the Central Bank, but still their work will be fundamentally in this sense, different”, – said Moiseev.

According to the law on the new mechanism of financial recovery of banks, this procedure will not be carried out by using preferential loans of the DIA, as it was previously, and through recapitalization of the credit institution by the Central Bank through Fund consolidation. In this case, the DIA remained the function of managing the bankruptcy and liquidation of banks.

The Bank “FC Opening”, which occupies the eighth place in the Russian banking system by assets, became the first project of the Fund for the consolidation of the banking sector. About measures for increase of financial stability of the Bank, the regulator announced Tuesday. The Central Bank will become the main investor of the Bank “FC Opening” and will provide financial support at the expense of the Fund. The Bank introduced a temporary administration, while it continues to serve customers as usual.

“The Fund will be capitalized (problem – approx. TASS), the banks at the expense of the Central Bank, then the money would certainly return, that is, it will not be on a regular basis, but nevertheless it will be to ensure Bank activity and funding his lost capital with new money. The law does not provide sources other than funds from the Central Bank”, – explained the mechanism of Moses.

A new mechanism of financial recovery of banks involves the sale of the Bank to the new owner after completion of rehabilitation procedures. The law on the new mechanism of financial recovery of the banks was passed by the Parliament in April.