According to the Federal Law as of 03.04.2017 №59-FZ «On amending Federal Law «On the National Payment System» Chapter 3 of the Federal Law as of 27.06.2011 №161-FZ «On the National Payment System» is supplemented by article 19.1 «Peculiarities of cross-border transfer of funds in case of prohibitions, imposed by a foreign state».
According to the article, in case of prohibitions, imposed by foreign states in relation to the Russian payment systems, the cross-border transfers of funds without opening of an account will be restricted.
Thus, the cross-border transfers from Russia can be made only in case of direct or indirect control from side of Russian legal entities represented by payment system operators or payment infrastructure service providers. Such control conditions are defined by International financial reporting standards, which are recognized on the territory of Russia. In other cases, the control is carried out through the right of Russian legal entities on direct or indirect disposal of more than 50% of total number of votes represented by voting shares or equity stakes of payment system operators or payment infrastructure service providers. Such right can also be obtained as a result of singing the contracts on trust administration of property, partnership, contract of delegation or for other reasons.
The Central Bank of the Russian Federation is planning to publish on its official web site data on prohibitions, imposed by foreign states in relation to payment systems, the operators of which are registered in the Central Bank. Prohibitions will be imposed from the date of posting of this information.
The Federal Law will come into force on 5 May 2017. However, the restrictions on cross-border transfers of funds will also be applied in cases of prohibitions in relation to Russian payment systems, introduced before the date of entry into force of this law.
It is possible to make an indirect conclusion on potential size of changes on the base of operations with foreign currency in cash on the territory of Russia (Table 1).
|2009||2010||2011||2012||2013||2014||2015||6 months 2016|
|Foreign currency in cash taken out by banks from the Russian Federation||18 152||14 993||7 015||5 768||9 471||7 981||17 482||5 243|
|Foreign currency in cash sold to individuals and given out as a result of conversion||50 317||39 456||51 833||61 961||59 546||71 865||37 147||16 314|
|Foreign currency in cash given out from the accounts of individuals||35 239||30 679||33 674||38 048||39 267||59 601||39 901||20 483|
|Foreign currency in cash given out to individuals as a result of transfers without opening of an account||1 531||2 119||3 281||2 160||2 311||2 638||2 321||1 100|
Rates of growth / drawdown from year to year of monthly average amounts of the above operations with foreign currency in cash are represented on Picture 1.
The subscribers of the Information and Analytical system Globas-i® may get acquainted with the activities of all bank and non-bank credit institutions and their branches with valid and revoked licenses.
On April 21, 2017 the Central Bank of the Russian Federation (CB of the RF) withdrew from the credit institutions Bank «Obrazovanie» and «FINARS Bank» a license to conduct banking operations and appointed temporary administrations.
Lately following banks were revoked licenses: «Rosenergobank» (10.04.2017), «Tatagroprombank» (05.04.2017), «Neftyanoy Alliance» (14.03.2017), «Economic Union Bank» and «Trade City Bank» (13.03.2017). Total for the first quarter of this year 14 banks and non-bank credit institutions were revoked the licenses. The chronology of events of the last month shows that the Mega-regulator continues traditionally to clean up the banking sector from bad organizations.
In general, for the period from January 1, 2015 to March 31, 2017, the CB of the RF withdrew the license from 294 banks and non-bank credit institutions. According to experts of the banking sector, at such rates the banking market will be cleared of unreliable credit institutions within the next 2-3 years. As a result, about 400 credit institutions will remain in Russia.
Currently, the Mega-regulator considers as the most common types of fraud in the banking sector the use of unreal borrowers, schemes with loans to retail borrowers, manipulations with deposits. The main reasons for the revocation of licenses are: financing of terrorist activities, money laundering, illegal and risky operations, unreliable statement, fraud, «capital holes», unsatisfactory financial standing, questionable credit policy etc.
The Central Bank of Russia has developed a package of documents in the form of a draft law, which describes the process of financial recovery of banks. Currently, the second reading of the law is expected in the State Duma. According to the developed proposals, the CB of the RF adopts a role of an active participant in the rehabilitation of banks. In case of appearance of signs of financial instability in a bank the Mega-regulator will be able to send there its representatives for assessment.
In addition, the CB of the RF will receive the right to establish LLC «Upravlyayushchaya kompaniya Fonda konsolidatsii bankovskogo sektora» (LLC Managing Company of the Fund of the Consolidation of the Banking Sector). The Fund will be entrusted with the task of preventing of bank bankruptcy. In view of this the Managing Company may be transferred shares and other property of a bank under trust, it will perform trust management of shares (stakes) of credit institutions, requirements for subordinated loans (deposits, credits, bonded loans) and other credits, deposits, bank guarantees.
It is planned that these shares and other property of recovered bank will be purchased by the CB of the RF. In addition, the Mega-regulator will be given the right to grant subordinated loans to the rehabilitated organization, issue bank guarantees, sell shares (stakes in the authorized capital) of credit institutions, where measures to prevent bankruptcy are implemented. Financing for the process of bank resolution is entrusted to the Fund of the Consolidation of the Banking Sector. Money in the fund will be formed from the cash of the Bank of Russia. They will be separated from the rest of the property of the Central Bank.
The ultimate goal of resolution of "sick" banks will be their recovery. After a full recapitalization the rehabilitated bank will be sold at an open auction to a new owner. It is believed that the use of a new mechanism of banks will allow minimize the expenditure of the state's funds planned for financial recovery.
The processes, taking place in the banking sector, testify to the existence of high risks in the industry. It is very important to entrepreneurs to be careful by choosing a bank. In particular, do not trust banks that conduct too much aggressive credit policy or banks that issue deposits at very high interests; do not trust young banks; do not work with banks that do not have a wide system of ATMs and a branch network. In addition, it is necessary to monitor constantly the market situation in the banking sector, check regularly the information on the standing of the bank, whose services an entrepreneur uses, as well as counterparty's bank for their financial stability – among them with the help of the System Globas-i®.