Bank to create a fund that can guarantee its financial stability and performance of obligations in case of problems.The amount of own funds must exceed the standard value of the capital adequacy ratio.The latter is a kind of insurance customers.It shows that the bank is interested in normal activity in the market.After all, if the shareholders are investing their own funds, it guarantees that they will be invested with due care anymore.But the sudden deterioration in the quality of the loan portfolio capital adequacy ratio can reach limits.In this case, the bank risks losing the license.
Out
to prevent a critical situation, the Central Bank is taking measures to stabilize the financial condition of the organization.Additional capitalization - is the provision by the Bank of Russia to credit institutions subordinated loan.It is part of the additional sources of financing.This means that in case of bankruptcy company obligations to the Central Bank will be executed last.Law and order is declared the level of participation of the state in this process.Such loans may be granted indirectly, through the Agency for deposit insurance (DIA) in the form of federal loan bonds (OFZ).A similar scheme was used in the 2008 financial crisis.
Headlines
In December 2014, Russian President signed a law on additional capitalization of banks totaling 1 trillion rubles.The list of "lucky" DIA published in February 2015.The loans will be provided not only through the OFZ, but conventional subordinated loans.This will help ACB to resolve the issue of bank capitalization.Applicants must submit to the 01/06/2015 agreed to acquire obligations of the Agency and the Central Bank - to provide the requirements for a particular institution.
Terms
Bank shall, within 36 months increased by more than 1% of the volume of mortgage loans, loans to small and medium-sized businesses.It is also possible variant of cash flows in the direction of the most important sectors of the economy.Another requirement is to increase the share capital by 50% of the amount of funds received from the profits or shareholders' investments.The banks in the next 36 months can not raise wages to workers.The last factor is more and constrains the leadership of the decision to participate in the program.Recapitalization - a help that is available in very tough conditions.
essence of
for industrialization of the economy requires substantial infusion in production capacity of the state.The influence of foreign investors should be limited.Banks are required to issue a large target loans.In this kind of focus and additional capitalization.The organization does not receive "live" money, and OFZ.At the same time she would draw the same amount on their own.You get only a quarter of the existing amount of own funds that, in turn, should not exceed 25 billion rubles.That is, additional capitalization - a measure to strengthen the regional banks that could potentially take a strong position on the market and to develop independently.This is confirmed by the terms of the program: the organization should increase the monthly loan portfolio by 1% or more.
International experience
crisis of 2009 showed the effectiveness of this method.Then the US government has allocated billions of dollars for the restoration of the financial condition of credit institutions without any sanctions.After 4 years the European Bank financed the Greek institutions amounting to 50 billion euros.After stabilization of the investor receives the net profit of the organization.That is why it is so important that, as the last speaker state.
volume of own funds of credit institutions decreased due to the requirements of the Central Bank to form reserves.Part of the funds appears only on paper: overpriced OS, equipment, buildings and other assets that can not be used as sources of financing.To control the situation, the Central Bank sets special standards and checks whether the organization possibilities of capital.
arranged for this stress test.Experts calculate risk analysis, as complex economic processes may affect the institution.In theory, such a check should take place on a quarterly basis.In Ukraine, the last time it was carried out at the request of the IMF in 2014.Then experts counted, how to react in the event of capital outflow of deposits and the growth of debt.According to the results of tests it was decided to recapitalize.
on prospects for the mortgage market
Ministry of Finance expects that the banks will be able to increase lending to the real estate by 15%.It is another objective, which is directed recapitalization.What does it mean?Banks will not be able to use the funds to buy foreign currency, as happened in 2008.It's a good news.But to increase lending to the required will be very difficult.We'll have to reduce interest rates and take a part of obligations.In this agreement, not all organizations.Since the capital increase - it is voluntary, the "VTB 24" and "Rosbank" has refused to participate in the program, arguing the fact that they are enough profits.
to potential buyers influenced by many factors: credit conditions, rising prices for apartments, confidence in the stability of income.The slight reduction in the rate can be offset by other monthly fees.Therefore, almost the measure will increase the demand for this service.Low-interest mortgages can issue only those borrowers with perfect credit history.This position of the bank is fully justified.And besides, not every borrower can be sure that in 10-15 years, its solvency does not deteriorate.
Experts predict that the positive outcome of the capital increase will lead to lower rates, increased demand in the segment of "economy", in which the share of mortgage transactions is 80%.Persons with a question of buying an apartment is acute, take advantage of a small decrease in percent.The rest of the buyers are likely to wait a significant change in the cost of credit.The share of mortgage transactions in the segment of premium rarely exceeds 20%.Therefore, the change rate is hardly an impact on demand.Most of the buyers of real estate to pay in installments for individual conditions.
additional capitalization of the bank: you need to know the depositor
1. This measure is used to increase the assets, or to cover losses.The initiator of the process can serve shareholders.In this case, we are talking about raising funds for new loans.
2. Have the problems in the bank does not mean that he needs money.Perhaps the Central Bank revised the regulations and the credit institution is not enough accumulated profits from previous years in order to achieve the targets.While the recapitalization of Ukrainian banks in 2014 was designed to cover losses.
3. First, the institution refers to the shareholders.If they are unable to finance the organization begins the search of foreign investors.The Law on recapitalization of banks stipulates that all the changes of the authorized capital must be registered with the Central Bank.After you have made to the accounts can be used like any other asset.
4. If you bring extra capital to cover the losses failed, the bank should either turn off the volume of activity, or liquidated.
5. additional capitalization - a recommendation, not a requirement.The capital increase does not ensure the financial soundness of the organization.If shareholders dishonest, the funds can be used to replenish the loan portfolio.In this case, it is likely that after some time the organization has once again the need to have financial assistance.
Conclusion
One method that can be used to stabilize the financial condition of credit institutions - Capital Increase.What it is?Providing financial assistance to the bank from the shareholders, the Central Bank or other international institutions.Russian President in late 2014 signed a law under which 27 regional institutions can obtain a subordinated loan.But wanting a little bit, because the conditions of the loan is very hard.
