«Sanitation" and "Sanatorium" - words that cause fear in the faces of many investors, especially in the era of the global financial crisis.In the literal translation of "rehabilitation" is treated as a recovery.If we impose the definition of the banking sector, it can be interpreted as an improvement of the financial institution.Sanatorium - a person or entity that is responsible for the restoration of the functionality of the institution.Rehabilitation work of a financial institution is not always carried out, but only if it is possible to avoid bankruptcy, or when commercial financial institution is classified as significant for a specific region.The procedure is ineffective if the drawdown of the balance in the bank match its balance sheet.The efficiency of the recovery process is determined by the Central Bank Commission.
essence readjustment procedure
essence of rehabilitation is to restore the efficient operation of the bank and not to resort to the revocation of the license of the Central Bank.The Banking Act provides that in the event of difficulties in the work of one of the chairmen of the bank must inform the shareholders about the complexities.Shareholders have already taken a decision with respect to a capital increase of a credit institution in the home, or to declare the financial incapacity of the parallel request for readjustment.According to Director General of the Agency for Deposit Insurance Isayev, he rarely had to deal with such actions banks.In most situations, the problems associated with the liquidity of financial institutions, carefully hidden.
What do Sanatorium?
As already mentioned, the sanatorium - a person or entity that is responsible for the restoration of the bank facing difficulties.At the same time defend the interests of depositors.Ideally, after the reorganization of the enterprise each investor must get back your deposit.Above procedure generally works not only the bank-sanatorium, but also the Central Bank and the Deposit Insurance Agency (Deposit Insurance Agency).By readjustment determined fault, are excluded from the management of persons who are guilty of the problems of the bank.Conduct comprehensive financing institutions, so that it can cover all its obligations.Certain benefits of sanitation and get yourself a sanatorium.You can talk about a loan of the Central Bank under the incredibly low rate.
Tasks motels and DIA
readjustment procedure in Russia is carried DIA.The procedure can participate bank sanatorium.This financial institution (it is much larger institutions, is on the verge of bankruptcy), which is ready to take on the obligations of the latter material.Alternatively, raising the level of liquidity it can be achieved at the expense of borrowed funds investors.When the responsibility for the financial situation of the bank, on the verge of bankruptcy, falls on the shoulders of a financial institution, sanatorium, DIA assumes responsibility for the formation of a new administrative apparatus.After completing this task, the responsibility to the Deposit Insurance Agency removed.Financial reorganization can not last more than 18 months.It can be extended for six months only if the decision will be made by the arbitral tribunal.CB determines held or not in this particular case sanitation.What do depositors in the bank's recovery period, easy to understand, as the services of a financial institution and a partnership, this process is not affected.
What procedures are conducted in the reduction of liquidity?
In accordance with the legislation of rehabilitation - a complex of measures, which should raise the level of bank liquidity, thereby freeing it from bankruptcy in order to maintain a license.Sanatorium of the bank - a subject that holds improvement of the financial and economic situation of the debtor.Parallel to satisfy all creditors' claims at the expense of lending, restructuring the enterprise with debts and capital inclusive.Allowed to change the organizational, legal and industrial structures of the debtor.Statistics says that bankruptcies will ultimately get so much more.Considering the question of what it means for the rehabilitation of the sanatorium, it should be said that this process is financially very costly and requires more effort and time.
What is included in the concept of rehabilitation?
Rehabilitation - this is a very extensive procedure, during which implemented a different type of problem.You can talk about realigning the activities and the closure of unprofitable programs.Issued deferral or sign a new contract on installments in terms of debt repayment.May be debt relief that is provided by the settlement.Required liquidated receivables and conducted asset restructuring.Distributed partial sale of the property.An investor in the event to raise funds, assumes responsibility for the payment of the debt.It is taken for the solution of problems in terms of financial commitments.With the restructuring of the bank laid off can get staff who are not directly involved in the procedure of readjustment.
why the government supports banks?
Sanitation and bankruptcy - it is not just incompatible, but also the opposite phenomenon.If the bankruptcy - a complete closure of the financial institution, which has a pocket for all investors and clients, the rehabilitation is to restore the health of the enterprise.Outside the format is a financial institution does not change.The Russian government, including the Central Bank, has its own interests in matters of sanitation.Helping small market participants, it enhances the credibility of the domestic banking system.If the bank, caught in difficult circumstances, is very significant for the region, its bankruptcy could hit entrepreneurs and, consequently, on the regional economy.At the moment, the procedure is performed in Russia only a few large financial institutions that are not particularly eager to play the role of missionaries due to the significant financial cost.
main difficulties
Sanatorium Bank - a larger bank with high liquidity, which takes on bail troubled organization.Problems with the restoration of health are mainly related to incorrect actions by the Governors of the Bank.They either have to do with illegal activities, or their account has assets of dubious origin.Make liquid assets is not always possible.Moreover, experience shows that issued the credit is not always enough for the rehabilitation of the financial institution.
What are the benefits of bank Sanatorium rehabilitation process?
Banks Sanatorium conduct sanitation exclusively in their own interests.Becoming patrons of troubled financial institutions, they get control of the new assets.It should be said about the attractiveness of sanatorium for customers.Presence status indicates confidence from the government and, therefore, attracts investors, raises the level of confidence in the institution.The sanatorium has always enjoyed the support of the state, have certain advantages.By banku- "savior" at the same time and imposed strict requirements in the segment of credit and fulfill their obligations.This has a positive effect on the reputation of the institution, increases its competitiveness in the domestic financial market.
