The Central Bank has updated the plan for the rehabilitation of Investtorgbank (ITB), the regulator said on Friday. The Central Bank will not give additional money, the statement stresses, and the TransBATP will continue to renovate the ITB.
In 2015, the Central Bank allocated 29.7 billion rubles for the improvement of ITB. for 10 years at 0.51% per annum, as well as 19.5 billion rubles. under the 6.01% annual liquidity sanatorium until October 2017. Subsequently, the regulator added money several times, this provided for the original plan, the bank representative said. The allocation of new tranches, among other things, depended on the results of assessments of ITB pledges, and the limit for additional funds was 26.2 billion rubles. (the term is 10 years, the rate is 0.51% per annum), it was chosen almost entirely.
Thus, the maximum that the Central Bank planned to allocate to cover the hole in the ITB was 55.9 billion rubles. (19.5 billion issued to Transcapitalbank for liquidity for two years). Financing for the rehabilitation of ITB will amount to 72.4 billion rubles., Vasily Pozdyshev, deputy chairman of the Central Bank, said on Friday: "The debt for the loan is 19.5 billion rubles. will be transferred to the ITB and returned at the end of the rehabilitation period. " The Central Bank extended the deposit repayment period by 19.5 billion rubles several times. First, Transcapitalbank had to return it in October 2017, after which the regulator gave the bank time until May 16, 2018, then - until July 16.
The plan implies a "balanced growth" of the mortgage portfolio and the purchase of OFZs for the entire amount received from the Central Bank, the regulator said in a statement. In the previous model, there was no emphasis on the formation of the ITB of a large portfolio of bonds of high reliability, explains Pozdyshev. According to him, ITB will buy securities (bonds with a rating not lower than sovereign) on the open market during the year. ITB has already started buying OFZ: on June 1, he kept on the balance of OFZ for 12 billion rubles. against only 76 million rubles. in March.
Prior to this, ITB focused on lending, including interbank, Pozdyshev points out, but does not say how much it was for loans granted to a sanator bank. The change in the amount of interbank loans issued by the ITB correlates with the amounts received by Transcapitalbank, follows from the Russian accounts of these banks. On June 1, ITB issued 25.9 billion rubles. interbank loans (17.7% of its assets).
The recovery scheme, in which the Central Bank provides cheap funding, and the bank places money in OFZ, allows to guarantee a stable cash flow in the form of a coupon yield with minimal risks, explains Moody's analyst Vladlen Kuznetsov, these OFZ can also be transferred to repo, receiving liquidity. Such a scheme does not give the bank the freedom to choose assets for investment, but makes the reorganization more controlled for the Central Bank, he explains. And he added that if the bank had given out loans for this money, the risk would have been much higher.
Many of the sanitized banks are investing the state support funds in the OFZ, as the banking market is experiencing a structural liquidity surplus amid a lack of quality borrowers, says Expert UK analyst Ivan Uklein. The corporate portfolio of the sector has not been growing since the beginning of 2016, the low profitability and high competition in the mortgage market, and sanitized banks can not issue unsecured consumer loans, he lists.
Replacement of the sanatorium would be impractical, says Pozdyshev. The integration of the two banks is almost complete, they have a single automated system and a data center. In addition, he continues, Transcapitalbank has done considerable work to recover the troubled debt of ITB: 452 bankruptcy procedures were instituted, 737 suits filed, 654 enforcement proceedings were instituted, and 20 criminal cases against former top managers and ITB debtors.