The Central Bank of Russia will estimate pledges upon credit activities

In order to improve the bank supervision, protection of creditors and depositors’ interests, to get more reliable information on financial situation of the borrower and item value of the bank pledge, the Federal Law as of 03.07.2016 №362-FZ “On Introducing Amendments to articles 72 and 73 of the Federal Law “On the Central Bank of the Russian Federation (the Bank of Russia)” and article 33 of the Federal Law “On Banks and Banking Activities” was enacted.

The law determines the verification procedure of property availability and estimation by the Central Bank of Russia, being the pledged item upon receipt of a credit. The procedure of familiarization with activities of the borrower and pledger is also determined.

The Central Bank of Russia is entitled a right to carry out an expert examination of the pledged item, accepted as loan collateral, in order to determine the adequacy of credit organization reserves, created for risks. The corresponding examination involves implementation of measures for recognition of the pledged item existence, its inspection and assessment of its value.

Credit organizations are obliged to set up their reserves, taking into account the results of such examination. The ways of assistance with getting information on the pledged item and the borrower’s activity should be described in the internal documents of the credit organizations.

Growing volumes of loan debts of the Russian enterprises in recent years, including debt under bank credits and loan indebtedness, indicate the relevance of the measures taken for increase of pledgers and borrower’s responsibility to the credit organizations (Figure 1).

The growth rates of loan debts since 2007 are presented on the Figure 2.