Irredeemable debts

How the CEO of the DIA Yuri Isaev and the head of the Central Bank Elvira Nabiullina will save the money of defrauded depositors.
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Deposit Insurance Agency (DIA) is making more and more debts in order to compensate for the lost savings of the Russians. The chief financial regulator, meanwhile, is going to continue the withdrawal of licenses from unscrupulous bankers ... Once they withdraw the savings of citizens through one-day firms.
Deposit Insurance Agency will have to re-borrow money to pay compensation to customers of the banrkupt banks. The head of the state corporation Yuri Isayev says about it, using smooth wording. According to him, the issue of increasing the credit limit is not on the agenda right now. However, Isayev is sure that sooner or later, the DIA will address the Bank of Russia with the corresponding request.

Like sand through fingers

The previous increase in the credit limit occurred quite recently: in October 2016. The Central Bank expanded the DIA leverage by 220 billion rubles, now it is 820 billion rubles. It should be noted that last year was a record year for the DIA. The amount of insurance compensation to depositors of the Russian banks increased by 60%. Over a million people asked for a compensation; the agency paid them more than 590 billion rubles. As a result, last fall the fund once again was on the verge of exhaustion.

Well-publicized depositor protection system for the first time experienced serious problems in 2013. It was then that the new chairman of the Central Bank Elvira Nabiullina began a massive purge of the banking sector. In 2014, according to reports from the DIA, the amount of insured deposits reached 18.3 trillion rubles, while the volume of mandatory deposit insurance fund amounted to only 83.6 billion rubles. The agency believes that this money will be enough to pay the deceived investors in 2015, but the Bank of Russia revoked several dozen licenses, and the situation became close to critical.

In total, since 2013 more than 300 Russian banks engaged in questionable transactions has lost their licenses. Elvira Nabiullina said that the final "recovery of the financial system" would require several more years. So, the DIA will continue plugging the holes made by "trash" commercial banks with taxpayers' money.

Pipelined collapse

The total hole in the balance of the 68 banks that lost licenses in 2016 (and for which the courts had to decide on bankruptcy), amounted to about 560 billion rubles. Much of this money was simply stolen by bankers through the issuance of one-day loans to fictious companies and the purchase of securities that are actually worthless. Although there were some easier schemes: the depositor's money were never mentioned in the records and got directly to the top managers.

The reason that people bring their savings to "trash" banks, is very simple: they offer higher interest rates than the banks of the top-10. Counting on the deposit insurance system, citizens have simply ceased to think about the reliability of credit institutions. In addition, in 2014 against the background of problems with financing of the DIA, the government decided to increase the amount of insurance compensation for deposits by half: from 700 thousand to 1.4 million rubles. Finance Minister Anton Siluanov said at the time that "the situation in which the agency does not have enough money to pay the depositors, is excluded." According to him, if necessary, it can borrow from the Bank of Russia practically in real time.

Irreversible losses

Minister's words run counter to one of the main principles of insurance: it must have a cumulative character through regular contributions from the member banks. When creating the DIA in 2004, the question was not about plugging the growing financial hole with the help of public money with dim prospects for recovery of these loans. The Bank of Russia provides loans to the agency without collateral. Sources it uses to pay principal and interest in favor of the Central Bank, are not yet clear. Experts point to the fact that insurance premiums are not enough for the current payments to depositors, and investment incomes of the DIA are small: in 2015 they amounted to 11.1 billion rubles.

After 13 years after the appearance of the deposit insurance system, we can conclude that it has not taken place in the way in which it was intended. The reason also lies on the surface. The report on the establishment of the DIA in 2004, said: "The most important work on the creation of a deposit insurance system is the selection of financially stable banks in the system was implemented by the Bank of Russia. In accordance with the Law on Deposit Insurance, they check the financial condition of all banks, filed a motion to join the insurance scheme." Perhaps the quality of this work today can be estimated by the number of licenses withdrawn by the Central Bank after the bankers managed to withdraw from billions of rubles from their depositors' accounts.

The regulator can allocate loans to the DIA either from its profits (which would go to the state budget), or by the means of the printing press. Ultimately, the bank holes will be plugged with the money of Russian taxpayers.


The Deposit Insurance Agency was established in Russia in 2004. Initially, the size limit of the insurance of individual deposits amounted to 100 thousand rubles. Since 2006 it was been increased to 190 thousand rubles, in 2007 - up to 400 thousand rubles. In October 2008, the state began to guarantee the return of bank deposits of up 700 thousand rubles, and in December 2014 - to 1.4 million rubles.