Experts called the reasons for the reorganization of the bank "Opening"

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The reasons for the reorganization of the Otkritie Bank have become known, RBC reports.

“The bank's attempt to acquire the largest player in the loss-making OSAGO market, the Rosgosstrakh company, became one of the prerequisites. Rosgosstrakh has become a trigger that hastened the need to decide the fate of the bank,” said Dmitry Tulin, First Deputy Chairman of the Bank of Russia.

The second reason was voiced by the Deputy Chairman of the Bank of Russia Vasily Pozdyshev: “The not entirely successful reorganization of Trust Bank also became a trigger.” As a result, the bank cannot move forward without further support, he said. According to the Central Bank, the outflow of client funds in August (August 3-24) amounted to 389 billion rubles for legal entities, 139 billion rubles for individuals.

The current situation was determined “by the business strategy itself: mergers and acquisitions at the expense of borrowed funds,” representatives of the Bank of Russia believe.

According to Tulin, the bank's owners applied to the Central Bank themselves. “The bank's owners realized that they would have to admit the fact of a decrease in regulatory capital to both auditors and rating agencies,” he added. — The capital of the bank, published in the statements, apparently, was significantly overestimated.

“We will not give a description of the details and specific operations, there are many questions. This is a very interesting phenomenon - FC Otkritie Bank," Tulin said. According to him, the size of the "hole" in the bank's capital will be determined by the interim administration, and no shocks are expected for the banking sector.

The Bank of Russia appointed a temporary administration at Otkritie Bank from August 29, 2017. As part of measures to improve financial stability, it is planned that the Bank of Russia will participate as the main investor using Money Banking Sector Consolidation Fund.

“The implementation of measures to improve the financial stability of the bank is carried out in cooperation with the current owners and managers of the bank, which will ensure the continuity of its activities in the banking services market and subsequently take all necessary measures to further develop the bank’s activities,” the Central Bank explained.

The temporary administration included employees of the Bank of Russia and LLC UK FKBS. There is no moratorium on satisfaction of creditors' claims. The mechanism for converting creditors' funds into shares (bail-in) does not apply, the Central Bank said.

The Bank will continue to work in normal mode fulfilling its obligations and making new transactions. The Bank of Russia will provide financial support to the bank, guaranteeing the continuity of its activities.

The other day (August 25), the Vedomosti newspaper, citing several independent anonymous sources, reported on the possible reorganization of the FC Otkritie bank, the decision on which is being seriously discussed in the Central Bank. It seems that the state will once again spend huge amounts of money to cover the debts of the troubled bank. Moreover, this time we are talking about a really large bank from the Top 10 (eighth place in terms of assets), and the state's expenses for its reorganization will probably amount to many hundreds of billions of rubles. Thus, once again we see an example of the imperfection of banking supervision in Russia, which is either not able to notice the problems of the bank at an early stage, or (more likely) does not have sufficient freedom in decision-making.

Tatyana Kulikova, economist
2017-08-26 16:46

FC Otkritie Bank is part of the Otkritie Financial Group, which has been aggressively expanding and building assets through mergers and acquisitions over the past few years. So, the FC Otkritie bank itself was formed on the basis of several banks absorbed by the Otkritie group over the past few years: these are Nomos-Bank, Petrocommerce Bank, Khanty-Mansiysk Bank Otkritie, and several other smaller banks. In addition, the Otkritie group was actively buying up other assets - financial and not only: for example, in 2014, the group took the notorious Bank Trust for reorganization (the group then received an almost interest-free loan from the DIA in the amount of 127 billion rubles), and FAS recently approved the acquisition by the Otkritie group of a 75% stake in Rosgosstrakh-bank (48th in terms of assets), which is the beginning of the process of joining the Rosgosstrakh group to the Otkritie group.

Such rapid growth should have long ago attracted the attention of the Central Bank as a mega-regulator of the financial market. (Here it is appropriate to recall another recent example of the riskiness of such accelerated growth - namely, the recently revoked bank Yugra, which also demonstrated a rapid increase in assets, not only through mergers and acquisitions, but through aggressive attraction of deposits from individuals; for more details, see below). .07.2017.)

However, the oversight bodies apparently lacked the political will to intervene in this potentially risky situation at an early stage (the Otkritie group has good lobbying potential), and Otkritie's problems gradually began to seep into the public sphere. Thus, in May 2017, the S&P rating agency downgraded the rating of FC Otkritie from BB- to B+, and in July the Russian rating agency ACRA assigned this bank an almost "junk" rating of BBB-, which no longer allows it to attract funds from the federal budget and non-state pension funds. funds.

Since June of this year, a massive outflow of customer funds from Otkritie FC began. This was, in particular, caused by the formal restrictions indicated above, which follow from the ACRA rating (prohibition to attract money from the budget and NPFs), but not only: for example, in June-July individuals took 36 billion rubles from the bank, and other banks - 236 billion rubles. As of August 1, 2017, Fitch calculated that Otkritie FC's liquid assets covered only 20% of client funding.

Thus, the message of the Vedomosti newspaper about the imminent reorganization of the FC Otkritie bank looks quite plausible. At the same time, it can be fairly confidently asserted that the bank's problems will be solved precisely through reorganization, and not through revocation of the license: FC Otkritie is a very large and systemically important bank, and its bankruptcy would lead to uncontrollable consequences for the Russian financial market.

Apparently, the reorganization of FC Otkritie Bank will be carried out according to a new mechanism - through the transfer of the bank to the Banking Sector Consolidation Fund, recently created by the Central Bank specifically for the reorganization of troubled banks. In fact, this means the nationalization of the troubled bank.

Let me remind you that the sanation mechanism that was in effect before that consisted in the fact that the Central Bank transferred troubled bank for reorganization to some other bank or financial group, which accepted it on the balance sheet, and at the same time received a long-term concessional loan from the DIA (for 5-10 years at half a percent per annum) in an amount exceeding the “hole” in the capital of the problem bank. In addition, sanator banks often used the bank being rehabilitated as a storehouse of bad assets, transferring to it (through complex schemes) their own bad assets as well. Thus, the state, in fact, not only paid the debts of the troubled bank, but also provided excess profits for the sanatorium bank.

The new reorganization mechanism (the main provisions of the relevant law came into force on June 16) essentially boils down to the nationalization of the troubled bank. The management company under the Banking Sector Consolidation Fund will take problem banks on their balance sheets, improve them, and then (possibly) sell them on the open market. Thus, the state will continue to compensate the debts of the troubled bank, but will no longer spend money on securing superprofits for sanator banks (since this link is now completely excluded from the process). As a result, the Central Bank expects that the new mechanism will save about 25-30% of public funds.

Nevertheless, even with the new mechanism, the reorganization of banks will be prohibitively expensive for the state, especially when it comes to such large banks as FC Otkritie, when hundreds of billions of rubles may be required for reorganization. Although this money does not come from the state budget, but in fact through the issue (the management company under the consolidation fund, having received shares of the rehabilitated banks, will create mutual funds and sell their shares to the Central Bank), the risks for the financial system in the event of the issue of such large amounts can be quite significant : it can be a surge in inflation, and a fall in the ruble.

We have to state once again: unfortunately, banking supervision in Russia is inefficient and not free from the influence of "non-economic" factors, and the state has to pay a high price for this. The question arises: why do we need private banks in Russia? Maintaining the existing banking system costs the state astronomical sums, and its benefits to the economy are almost imperceptible: bank lending to the real sector of the economy has been stagnating for an extremely low levels and is not going to grow. Isn't it time to seriously turn to the idea of ​​creating a truly state-owned bank that works for the needs of the economy, and not for profit maximization (as Russian "state-owned banks" are doing now, which in their activities are no different from ordinary private banks, but only receive state support)?

Volgograd depositors of Otkritie are at a loss: many of them think that the news about the reorganization of the bank portends the impending abolition of the financial organization or its merger with another institution. There have already been rumors about a possible transfer of 100% of the assets of Otkritie to the control of the Central Bank - and that in this case the bank could become part of the VTB group. The editors of NovostiVolgograd.ru news agency tried to understand the situation and find out what the reorganization of one of the largest private banks in the country will bring to Volgograd depositors.

Will the Central Bank become the owner of all the assets of Otkritie and will the reorganization of the institution lead to its absorption by another financial group, will be known in about three months. In the meantime, Volgograd depositors, despite the optimistic assurances of the regulator, continue to be at a loss about the state of the bank, which, contrary to its name, almost closed.

The situation around Otkritie Bank remains controversial. On the second day after the announcement of the financial corporation's reorganization, some details appeared, as well as possible reasons happened.

On Tuesday, August 29, the Central Bank announced the reorganization of FC Otkritie. A temporary administration is being introduced in the bank. At the same time, clients of the bank of the same name and all companies from its group were assured that credit institutions would work as before.

The peculiarity of the situation around the FC is that for the first time the Central Bank itself is conducting the sanation. For this, the Banking Sector Consolidation Fund, created in May, will be used. 75% of the shares of the financial corporation became the property of the fund. 25% of the shares will remain with the previous owners. Earlier, the Bank of Russia has already issued a loan of more than 300 billion rubles to Otkritie.

"This means that the bank will continue to work in a normal mode. Depositors will not suffer. Just as bond holders, including subordinated issues, will not suffer. Liquidity both from the Bank of Russia itself and directly to banking system enough to ensure the restoration of the full-fledged work of Otkritie together with its subsidiaries, and to prevent problems in other large banks and financial ones," Andrey Khokhrin, head of the department for working with wealthy clients of JSC IC ZERICH Capital Management, said on the website.

REASONS FOR RENEWAL OF FC OTKRITIE FROM THE CENTRAL BANK

Representatives of the regulator named the reasons that could lead one of the largest private banks to such a deplorable situation that he needed the help of the Central Bank.

Dmitry Tulin, First Deputy Chairman of the Bank of Russia, links the bank's problems with the acquisition of the largest player in the unprofitable OSAGO market. We are talking about "Rosgosstrakh", as well as the bank owned by him. Tulin believes that Rosgosstrakh has become a trigger that hastened the need to take measures to save Otkritie.

The representative of the Bank of Russia is sure that the bank came to the current state of affairs due to a number of mistakes in the strategy. Leveraged mergers and acquisitions have been bad for Otkritie. Problems were identified last fall. Now the Central Bank intends to achieve a reduction in the volume of operations.

According to the Central Bank, the outflow of client funds in August amounted to 389 billion rubles legal entities, as well as 139 billion physical.

BANK OWNERS APPEALED TO THE CB

The representative of the Central Bank said that the owners of Otkritie themselves turned to them for help. They realized that they would have to admit to auditors and rating agencies that the regulatory capital had been reduced. At the same time, he clarified that the data published in the reporting, apparently, were significantly overestimated. A detailed story about how the bank came to the current situation was not announced by the Central Bank. The volume of the hole in the capital will be determined by the interim administration.

The main owner of Otkritie Bank, Vadim Belyaev, said on Wednesday, August 30, that he fully supports the actions of the Central Bank and considers them correct. In an interview with The Bell, he said that he would help the regulator. He noted that it is important for FC to go through the most difficult time in its history as painlessly as possible. The Central Bank is confident that the bank's reorganization will not affect the market in any way.

"If we were talking about the revocation of a license or a moratorium on meeting the requirements, then the risks would be for the sector, and now we are talking about a significant increase in the financial stability of the bank. We do not expect any shocks in the banking sector in the foreseeable future," Tulin told RBC .

“In general, there is one more state-owned bank in the country. In terms of its asset structure, Otkritie Bank is very similar to VTB, only on a smaller scale. And the regulator has long been familiar with the VTB model. it's not worth waiting for in the coming months," Khokhorin said.

Photo: Istagram / open.bank, dashula_dubkova, vladimir_merkushev, unsh_tau

The Central Bank of the Russian Federation has begun reorganization of FC Otkritie, the regulator will become the main investor, the Bank of Russia said in a statement. Funds for this will be allocated by the Banking Sector Consolidation Fund (FCBS). Since August 29, a temporary administration has been appointed at Otkritie. The temporary administration included employees of the Bank of Russia and UK FKBS LLC. Shares of Otkritie Bank in response accelerated growth and rose by 2.3%

The release of the Central Bank emphasizes that the bank will continue to work as usual, fulfilling its obligations and making new transactions. The Central Bank will provide financial support to the bank, guaranteeing the continuity of its activities. Financial institutions and specialized services of the group will continue to operate as normal and serve customers. There is no moratorium on satisfaction of creditors' claims. The mechanism of converting creditors' funds into shares (bail-in) is not applied.

"The implementation of measures to improve the financial stability of the Bank is carried out in cooperation with the current owners and managers of the Bank, which will ensure the continuity of its activities in the banking services market and subsequently take all necessary measures to further develop the bank's activities," the regulator said in a statement.

Anti-stress scenario

Earlier it was reported that FC Otkritie Bank is working on an anti-stress scenario to minimize financial losses due to information attacks. The Central Bank named the current head of VTB24, Mikhail Zadornov, as an anti-crisis manager for the bank. The approval by the VTB Supervisory Board does not prevent Zadornov from considering other options, Kommersant noted. The merger of banks is scheduled for January 1, 2018.

Earlier, an analyst at the Alfa Capital management company circulated a letter reporting problems in Binbank, FC Otkritie Bank, Moscow Credit Bank and Promsvyazbank. Later, the Criminal Code withdrew this letter. Then the Federal Antimonopoly Service issued a warning to Alfa Capital Management Company, demanding that a refutation be sent to the clients who received this letter.

As a result, FC Otkritie became the first bank to transfer to the Banking Sector Consolidation Fund, created by the Central Bank to rehabilitate banks. In order to deal with the rehabilitation of banks independently - without the participation of the Deposit Insurance Agency (DIA) and market investors - the Central Bank created the Banking Sector Consolidation Fund and a management company. The law provides that after the reorganization of the bank is completed, the fund will be able to sell credit organization, the newspaper explains.

Capital outflow

On August 22, ACRA put the bank's rating on review with a negative outlook, which closed the bank's ability to place funds from the state budget and NPFs. In June and July, customers withdrew more than 620 billion rubles from the bank. Part of it was due to the curtailment of reverse REPO transactions on the bank's balance sheet, Moody's estimated the outflow of client funds in June-July at 435 billion rubles. As a result, the bank lost 20% of its obligations. At the end of August, Otkritie attracted 330 billion rubles from the Central Bank under REPO transactions, the regulator opened an unsecured credit line for the bank, using this mechanism for the first time since the financial crisis of 2008

“Rehabilitation of such a bank amid continued cleansing of the banking sector could provoke a further flight into quality, which would benefit state-owned banks, foreign banks, and some large private banks, but would negatively affect smaller private players who will have to offer more high stakes on deposits to retain customers. And this is fraught with the fact that such banks will simply not be able to compete for reliable borrowers, which will ultimately lead to their exit from the market,” Fitch analyst Alexander Danilov told Vedomosti.

"FC Opening" - commercial Bank, which was formed as a result of the integration of more than 10 banks of various sizes. The Discovery group includes the National Bank TRUST, Rosgosstrakh Bank, Insurance Company"Rosgosstrakh" and non-state pension funds NPF Lukoil-Garant, NPF Electric Power Industry and NPF RGS, as well as Otkritie Broker, Tochka and Rocketbank. about 3.2 million individuals.

The key shareholder of the bank is Otkritie Holding, which owns 66.64% of voting shares. According to RIA "Rating", as of August 1, FC Otkritie Bank ranked eighth in the list of Russian banks in terms of assets. Through Otkritie Holding, 66.4% of the bank's shares are owned by seven persons - one of the founders of the bank, Vadim Belyaev, chairman of the bank's supervisory board, Ruben Aganbegyan, Alexander Mamut, the IFD group, the IST group, and NPF Lukoil-Garant and VTB Bank. The latter owns 9.9% of the shares.

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