Tatarstan domino: why the republican banks are collapsing

The panic of depositors in Tatarstan is not over, but there're still no plans for the rescue of the republican banks. The Bank of Russia and Tatarstan do not want to spend extra money to save the credit organizations from the crisis.
Origin source
On Wednesday, 21 December, it was reported that the former leader and one of the key shareholders Tatfondbank, ex-Minister of Finance of Tatarstan Robert Musin did not attend the meeting of the Budget Committee of the State Council of Tatarstan, citing illness. Rumors that Robert Musin is abroad, has denied his colleague, a member of the Board of Directors Tatfondbank Ildous Mingazetdinov.

Musin was removed from the management of the Bank on December 15 and December 14 Tatfondbank suspended settlement and cash services due to lack of cash. The Bank has introduced a limit on ATM cash withdrawal in the amount of 15 000 rubles per day, several offices had been closed due to the liquidity problems in the working offices were formed long queues.

On December 1 Tatfondbank correspondent accounts in the Central Bank was only slightly more than 20 million rubles, and highly liquid assets was about 2.5 billion rubles. Tatfondbank lost 10% of their deposits (more than 12 billion rubles), reported the rating agency Moody's. According to statements of the bank as of November 1, the population kept there 76.1 billion rubles, and the company - 46.6 billion rubles. Moody's lowered the rating Tatfondbank from B3 to Caa1 and has committed its revision. At the beginning of December Tatfondbank took 42 th place among Russian banks with assets of 210 billion rubles, and the second place in Tatarstan.

In Tatfondbank located in a coma for the interim administration was introduced. DIA has recognized the position of the bank's insured event and promised to soon begin the payment. The Bank of Russia on December 15 imposed a moratorium on satisfaction of creditors Tatfondbank a period of three months. The bank has already defaulted on the bonds for 3 billion rubles, said on December 21, the bank administration.

banker collapse

The trigger for the problem was the collapse of the bank Tatfondbank another ill at the critical moment the financier Alexander Shvets, head of the bank's support of the ROC - "Peresvet". In this bank the excess liabilities over assets amounted to more than 35 billion rubles. Bonds "Peresvet" in the amount of about 4-5 billion rubles held Tatfondbank. According to the head of analytical department of the Bank's corporate finance Maxim Osadchy, with "Relight" problems were not the only cause difficulties - problems have arisen at the bank during the 2008-2009 crisis, for example, formed extremely suspicious assets in a fiduciary capacity.

The situation has worsened and Tatfondbank after hardware Musin lost weight - he resigned as chairman of the board of directors of the largest bank in Tatarstan "Ak Bars" in 2013. As a result of the bad assets - loans to companies Domo (according Tatar media Musina project), "White Wind Digital" - moved from the balance of "Ak Bars" in Tatfondbank, which then also led Musin. "Ak Bars" Clean and retail portfolio, for example, in June last year passed Tatfondbank auto loans by 1.4 billion rubles and mortgage 1 billion rubles.

Falling panic depositors only exposed the accumulated problems of the bank and other banking institutions in Tatarstan - on the raid suffered rehabilitated banks Musina "Soviet" and "Timer" (formerly the "BTA-Kazan"). Local media have been associated with activity Mussina has three banks presented in Tatarstan - Radiotekhbank (according to the Central Bank, Tatfondbank owns 29.85% of its shares), and IntechBank Tatagroprombank. The last two have worked through the processing center Tatfondbank with international payment systems Visa and Mastercard (except they still Altynbank), said Osadchy.

Banks began complexity and limitations of operations. Altynbank suspended operations due to the default processing center Tatfondbank. IntechBank limited banking operations, on December 13, he has not fulfilled the obligations under repurchase agreements, Timur Bank imposed restrictions on withdrawals in case of early closure of deposits. Started a domino effect, explained Osadchy.

Musin conducted consultations with the Government of Tatarstan and was the bank's plan to restore financial stability, which was sent to the Bank of Russia. But it is doubtful whether the Central Bank will agree The beaten huge amounts of money to rescue the hapless banker and its structures. Before erupted in Tatarstan banking crisis Tatfondbank on the background of problems with liquidity on several occasions appealed to the Bank of Russia for obtaining 10 billion rubles, but received refusals, RBC reports.

The Bank of Russia will save on bailouts

Strategy Minister Elvira Nabiullina, in contrast to how it was during the leadership of the Central Bank Sergei Ignatyev, does not imply the allocation of significant funds for the rehabilitation of banks, but rather, on the contrary, involves reducing the number of credit institutions. The Bank of Russia prefers to rehabilitation at the shareholders and customers of banks took part, and in the case of Tatfondbank - and Tatarstan. But so far failed to agree on rescuing banks Tatarstan. The problem, obviously, to the cost and the fact that the good times for the country and the national budget has already passed, and the means of salvation Tatfondbank group may take a lot. "Hole" in the group of banks Tatfondbank could exceed 110 billion rubles, said the source "Vedomosti".

According to Managing Director of NAFI Paul Samieva now moment is missed, the situation develops uncontrollably at least October (after problems with "Peresvet") and statements for investors already poorly perceived. "At one time in Samara collapsed and fell under the reorganization around seven banks and now the market is not the same there. An urgent need to remove the stress and panic in the market - a certain cost and freight for the state and taxpayers, "- says Samiev.

Payments to depositors funds Tatfondbank will carry out five banks, including and "Ak Bars", which is to hold the next capitalization, says the analyst of "Finam" Bogdan Zvarich. But the position of the "Ak Bars" can not be called perfect. Managing Director of the bank rating agency Stanislav Volkov RAEX said in general about the low or even negative economic growth from the deterioration of the quality of assets of many banks of the republic. "The problem is compounded by the large number of funded projects in construction and development. Often, these loans were related to the Bank's borrowers or borrowers hoping to participate in the various regional programs. In both cases, banks are loyal approach to the assessment of risks, "- says Volkov.

Fitch Ratings summer (while reducing the stability of "Ak Bars" rating from «B-» to «CCC») reported that in case of deterioration of the economic situation, the bank can not cope without support. "Asset quality and capitalization remain at risk in light of the considerable size of high-risk assets, which were poorly covered by reserves, and only a small capacity of the bank to absorb potential losses due to equity loans and profit before allocations to reserves", - reported in the press release of the agency.

And this support is implemented Tatarstan. "Ak Bars" periodically sold high-risk loans to 29 billion rubles structures associated with the republic, such as the transferred assets "AK BARS Development". Total Fitch Ratings reported revenue of 16.2 billion rubles. However, the proportion of high-risk assets, according to the agency, is significant and amounts to not less than one third of the assets of "Ak Bars" (about 100 billion rubles), indicating Fitch. In addition, through its company Tatarstan regularly supported by long-term bank deposits of "Tatneft" and other structures. ( "Tatneft" in Tatfondbank was 5.4 billion rubles). Controlled by the Government of Tatarstan in financial support "Svyazinvestneftekhim" passed "Ak Bars" 16.09% of shares of "Kazanorgsintez".

But support is not enough, since the entire banking system of Tatarstan strongly intertwined. "Ak Bars" has inter-relationship with Tatfondbank and credited him (but the volume of lending is not known). By Paul Samieva words, on the one hand, the Tatarstan market has always stood apart - had a strong support to national authorities and was considered one of the stable to the crisis, but it had a downside. This is the "interweaving of the banking system with local businesses, the involvement of the beneficiaries of banks and businesses in power," says Samiev. He believes that the bank's customers and lenders believed that Tatfondbank priori can count on the help of Tatarstan, and when it is needed, it became clear that there is no support.