The Central Bank will add 220 billion rubles for payments to depositors of bankrupt banks

Photo: Andrey Rudakov/Bloomberg

The Board of Directors of Agency on insurance of contributions (ASV) approved request to the Bank of Russia with a request to increase to 220 billion rubles the amount of the loan to ensure the financial sustainability of the Deposit insurance system

The Bank of Russia will increase the limit on the loan to the DIA Deposit insurance Fund (DIF) at 220 billion rubles, told RBC press service of the DIA. “At the meeting of the Board of Directors approved the appeal to the Bank of Russia with a request to increase to 220 billion rubles the amount of the loan to ensure the financial stability of system of insurance of deposits”, — told RBC DIA.

As of October 7, not used, Agency loan balance of Bank of Russia is 156 billion rubles in the framework of the previously approved limit of 600 billion rubles.

The increase in the credit limit of the Central Bank is necessary to ensure the adequacy of Fund reserves, stressed the Finance Ministry. “Calculations show that, I guess I’ll have to do it, you have a limit raise in excess of what was approved. <…> Here is the most important for us — with a lot of deliberately to ensure sufficiency of the Fund. Therefore, it is better we will increase the limit and then not use it, than it will turn out that we limit is not raised, then the money is not enough” — said at a briefing on 23 September, Deputy Finance Minister Alexey Moiseev (quoted by “Interfax”).

The original size of the credit line from the ASV, the Central Bank amounted to 110 billion rubles., then several times increased. In particular, in March 2016 it rose to 420 billion rubles, in 2016 — for a further 180 billion roubles to 600 billion roubles. With the latest increase the credit limit of the Central Bank rises to 820 billion rubles.

In the savings Bank believe that given the new loan provided by the Bank, additional liquidity, the DIA will last until the end of the year. “Next year will need new loans,” says senior managing Director and chief analyst of Sberbank Mikhail Matovnikov. He notes that the regulator and the market is actively discussing the increase in contributions to FSV. “Bail-in, the Central Bank does not want to enter, the rates of the deductions previously discussed. Our position is that the increase in contributions will further hit the profitability of banks, and collect a lot of money will come. Real opportunities lie in improving the collection of funds in the process of collecting the assets of insolvent banks. If the DIA paid to depositors 1 trillion rubles will be able to return at least 60% (at the same legal entity will not get anything), then the debt to the Bank will be back” — says the analyst.

The decision to increase the credit limit of the Central Bank for the DIA shows that the regulator is determined to continue the process of cleansing of the banking market, the Chairman of the Board of SDM Bank Maxim Solntsev. In this sense, according to him, the strategy of the Central Bank did not change after personnel changes in the leadership.

According to ASV at the beginning of October 2016, since the creation of the DIA 2.67 million depositors received insurance indemnity in the amount of 1.12 trillion rubles.

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