studying the question of what a capital increase, it should be said that this procedure, which is very popular as the dominant means of combating the financial and economic crisis.Many states in the period from 2008 to 2009 to provide financial institutions the capital of the first level.Today, this policy is practiced in Russia.In 2008, financial assistance to private and state-owned banks and a number of commercial companies helped the country to solve many problems.
How is the injection of funds?
introduction of funds in troubled banks was carried out through the purchase of preferred shares of state and other financial instruments that are consistent with the rank of first level.Recapitalization of credit institutions by the state through the purchase of common shares of financial institutions held much less frequently.Looking at the statistics, we can say that of fifty largest banks in America in times of crisis, only 23 have received state aid.In Europe assistance has been provided only 15 establishments, which corresponds to 76% and 40% of pre-crisis capitalization of the banking sector.According to information provided by the IMF, the average program recapitalization at public expense in the spring of 2009 amounted to 3% of GDP.
additional capitalization in Russia
Considering that this capital increase, we need to look at the situation in Russia.Russian President Putin signed a law on the recapitalization of financial institutions in the amount of 1 trillion rubles by issuing OFZ (federal loan bonds).Under assumptions of the authors of the law, property contribution must be made in the Deposit Insurance Agency.It, in turn, will forward the funds to banks to perform their obligations in terms of repayment of debts to depositors, loans and bond debt.The funds will be directed to the preferred shares.The government will give at the disposal of the insurance agency OFZ at the amount specified above, which would allow him to support domestic banks in a crisis.
What opportunities does the solution?
bill, according to which will be carried out recapitalization of credit institutions in Russia, was preparing for a long time.This is due to the fact that as a result of the deteriorating economic situation in the country in connection with the sanctions by the West under the kick hit the financial sector.Many experts predict even defaulted in this direction.The money allocated for the rehabilitation of the financial segment, will be tightly controlled.This was at a planned meeting officially declared the chairman of the Accounting Chamber Golikova.Forecasts Siluanova Minister of Finance say that the bill after full implementation is to increase the total amount of the banking capital of the country for at least 13%.The total amount of credit in the short term should increase by at least 15-20%.It was announced that all proceeds from the DIA OFZ will be redirected to the federal budget.
When a bank needs support?
Each bank has its own capital, which consists of the personal funds of the financial institution.As part of the financial institutions have assets that attract investors and provide companies belonging to a certain category.Capital Bank collects funds by attracting investors - both individuals as well as commercial entities.He borrows.This financial institution provides loans at higher interest rates.The difference between the payment of interest on loans and interest on the loan and provides the liquidity of the company.In a crisis, with a sharp outflow of capital from Russia, many borrowers of the bank not only returned to duty, but failed to even repay the interest on it.Consequently, the failure of the budget emerged and the bank is no longer able to fulfill their obligations to investors.Change the situation helps recapitalization of banks.What is it, just understand.In fact, in a simplified form - it is the payment by the state of bad loans with a view to keep the liquidity of financial institutions at the highest level.
Why the Government is recapitalization?
Considering the terms of the issue of the government that such capital increase, the procedure can be called attempts by the state to avoid panic.If financial institutions en masse will not perform its obligations due to the low capital adequacy, it will cause excitement.People will massively withdraw funds from foundations and withdraw deposits, which could not only lead to the devastation of the budget, but also an incentive to the strong jump courses.Issuance of subordinated loan, which will be confined to the main capital and act as a guarantor of stability of the banking system, can be called the word "capital increase".And today this procedure has been subject to more than one bank.Thus, the recapitalization was carried out, "Delta Bank", "Agricultural Bank", "VTB".And it's only a few of the list of financial institutions that are supported by the state.In accordance with the law, the obligation on the subordinated loan are executed last.
that in fact give subordinated loans?
Deputy Chairman of the Central Bank of Russia Mikhail Sukhov said that the recapitalization "Rosselkhozbank", in fact, like other financial institutions, should have a downward effect on interest rates in the real economic sector.In the future, will be carried out to stabilize between economic sectors and financial market, which is now on the verge of default.The funds that will be moved from the DIA to the banks should not be subject to taxation.The Russian government has practiced this scheme to support the financial system of the state in 2008, which has brought very impressive results.The decision to avoid the bankruptcy of many credit institutions, save a lot of investors from losses.
Which credit organizations can count on the support of the government?
dealt with the question of what a capital increase in the bank, you should pay attention to the fact that not all financial institutions receive state support.The list of banks selects and approves the DIA.According to RBC, on the subordinated loans can count 27 institutions, the capital of which is not less than 25 billion rubles.From officially allocated to support the financial sector 1 trillion rubles, the actual aid will amount to total 830 billion.The main criterion for the selection of companies to be their willingness to significantly expand lending to the real economic sector in the priority areas for the government.As repeatedly stated recapitalization of banks (what it is discussed above) is not aimed at solving difficulties in troubled financial institutions.At material support to a direct purpose.
conditions to be followed by the bank
The list of lucky hit financial institutions whose activities meet the established standards.It is the availability of capital in the amount of 25 billion rubles, which was written above.Moreover, the bank-applicant had over the past two years to actively develop lending to the real sector of the economy.Expansion direction should be at least 12%.In accordance with the selection criteria, the financial institution should tightly fit to pay their employees: the limited growth of salaries, the minimum remuneration to the members of the Board and the Board of Directors.Strict policy must act, and in terms of accrual of dividends to investors.According to preliminary estimates, the assistance will be assessed in the following financial institutions:
- "VTB" will receive 307 billion rubles.
- backup point "VTB" - 193 billion rubles.
- retail "daughter" of "VTB 24" - 65.8 billion rubles.
- "Bank of Moscow" - 49 billion rubles.
government anti-crisis plan
studying the question of what a capital increase, it is worth noting that the term applies not only in relation to credit institutions.Financial assistance from the state may be for-profit companies to any other organizations that will help restore the country's economy.The program aimed at combating the crisis, plans to spend about 2.3 trillion rubles.The planned capital increase of the company, for which, by the way, the financial institution has yet to be overcome, is already activated at the beginning of the first quarter of this year.Banks that receive support have taken a number of commitments.They need to increase the volume of mortgage lending at a rate of at least 1% per month, increase the number of loans to small and medium-sized businesses.Moreover, financial institutions have to increase its capital by an amount equal to half of the financial assistance received.Raising wages to all employees of the financial institution it is prohibited for the next three years.
In which sectors is planned to issue subordinated loans?
As already known, the financial assistance will be provided to at least 30 Russian banks, including "VTB".Capital increase will cover the following areas:
- Agriculture - in the amount of 10 billion rubles.
- Automotive industry - 5 billion.Funds solely on the continuation of the program for waste disposal.
- Credit subsidies to enterprises - 5 billion.
- Regions will receive a billion for the purchase of vehicles that run on natural gas.
The statistical state planned to leave the country's defense spending, the social sector.In the fight against unemployment it is planned to pay 82.2 billion rubles.It was originally planned to invest in the restoration of the state's economy at least $ 100 billion, but then it was decided to limit ourselves to only 23 billion rubles for the active sectors.
"Gazprom" to help
addition to the issuance of subordinated loans to financial institutions, the president has repeatedly raised the question as to what additional capitalization of "Gazprom" is no less important.The Russian president was careless enough to officially promise financial support from the state.In fact the bill was rejected, as they found that a large corporation is able to find their own money on the project for the construction of pipes for the transportation of Russian gas to China.To implement the project as a whole need to spend about 55 billion, 25 of which have already promised to give China itself - partner of Russia to unite the BRICS and the SCO.Russian Ministry of Finance is not just questions the rationalism of the project, it is confident in its loss ratio, and additional capitalization of VEB looks much more successful project.In addition, at a meeting of members of the government were heard phrases that state expenditures are increasing, and this is no time to waste in the state budget to support questionable projects.
