The Central Bank decided to change the system of recovery of troubled banks – RBC

The head of the Central Bank of the Russian Federation Elvira Nabiullina

Photo: Mikhail Japaridze / TASS

The Bank of Russia plans to change the scheme of rehabilitation of problem banks. Control yourself will readjustment, creating a banking sector consolidation fund, said the head of the Central Bank Elvira Nabiullina

A draft law on the creation of the consolidation fund of the banking sector will be included in the State Duma in the autumn session, told in Thursday, June 30, Chairman of the Bank of Russia Elvira Nabiullina at the XXV Congress of the International financial. According to her said that the fund will be engaged readjustment of troubled banks, and then selling them on the market.

The bill will be made within the framework of changes in credit institutions sanitation system that Now The Bank of Russia is ineffective because banks use – Sanatorium troubled banks for lending to small businesses and transfer their balance of bad assets, he said Nabiullina

«That is why for already reaching bailouts, we are tightening control over the financial recovery, all transactions between the sanatorium and rehabilitated banks will be the focus of supervision with the prohibition of the sanatorium to worsen the financial position of the rehabilitated banks with their bad assets. We also set high demands on the financial situation of the sanatorium themselves “, – quotes” Interfax “Nabiullina. In the last three years, it was decided to sanitation 28 banks, added the head of the Central Bank .

However, tighter control does not solve the problem of systemic weaknesses of financial improvement of the credit mechanism, said Nabiullina and listed these drawbacks: “Long life to the rehabilitated banks undercapitalized market – up to 10 years. As well as the high cost of the instrument: credit scheme in the current environment requires the allocation of resources is about 1.6 times greater than in the scheme of entering the capital. Inability to consolidate rehabilitated banks, as they sanitize different winners; insufficient number of sanatoriums with a stock of financial strength; increasing the debt burden on the DIA; the duration of the return of loan funds and the motivation of the sanatorium to use the rehabilitated banks as the stock of bad assets ».

Video: RBC

« The Bank of Russia will be the main organizer of the rehabilitation process. The transition to the new model will create conditions for optimization of the banking sector “, – said Nabiullina. According to her, the Fund will deal with the improvement of financial indicators of a troubled bank, the completion of its capital, after which the “commercial banks will acquire in the market and working to capitalize the banks.” “Operational management of the rehabilitated banks can be carried out specifically established by the management company”, – said the head of the Central Bank

The head of the Central Bank said that the new rehabilitation scheme may lead to the risk of the emergence of “nationalization of the banking sector.”. “But it does not occur for two reasons. Firstly, the importance of the rehabilitated banks for the sector is low. Secondly, the result of redevelopment should be selling banks. The second risk – a conflict of interest, but we will build a Chinese wall between the Fund and the supervision, “- promised Nabiullina.