Amount of own funds of banks applying for keeping of budget resources is specified

According to the order of the Russian Federal Treasury №17n as of 05.09.2016, new amount of own funds of banks applying for keeping of the federal budget resources is specified.

Since 2008 temporary free cash of the federal budget is permitted to be placed on bank deposit. Since 2011 this rule is also spread on cash of non-budgetary fund and state corporations. It is associated with the necessity of protection of budgetary funds from inflation and support of banks requiring additional liquidity.

During functioning of the system, major deficiencies were identified. In 2015 the licenses of 93 banks were revoked, and 112 revoked licenses in 2016. Some of them kept budget funds that led to direct damage to the economy, evaluating in hundreds of millions roubles.

According to the experts, this situation was resulted by overly loyal requirements to banks, when the amount of own funds of 5 bln RUB was sufficient. Now the amount for banks applying for placing budget funds is increased to 250 bln RUB, i.e. in 50 times. Currently only six banks meet the requirements: Sberbank of Russia PJSC, JSC VTB Bank, JSC VTB24, JSC Gazprombank, JSC Russian Agricultural Bank and JSC Alfa-Bank.

Moreover, the banks are also required to have the international credit rating of BB- or higher, general license of the Central Bank of Russia on placing budget funds, no overdue deposits and violation of statutory requirement of the Central Bank, participation in private individuals’ deposit insurance system.

Since entering of new requirements into force on November 12, 2016, banks with insufficient own funds are obliged to return budget funds. The Federal Treasury in its turn has to conduct new auctions on placing the federal budget funds.

For reference
The subscribers of the Information and analytical system Globas-i^® have an opportunity to get acquainted with the activity of all 586 acting bank and 49 non-bank credit institutions and their branches. There information on all credit institutions with revoked licenses and their branches is also available.