Problems of the financial market turn out to be more serious

Essential component of the state economy is financial market, the basis for that represents banking sector. At the same time, lately, non-banking financial sector is becoming more significant – firstly at global markets and, consequently, in Russia. Taking into account that the Central Bank of the RF as megaregulator tries to pay attention to all sectors of the financial market, the XXV jubilee banking congress held from June 29 to July 1, was named financial.

On the congress the head of the CB of the RF admitted that problems of the banking sector compared to the beginning of the recovery program of the banking system are much more substantial. Among them – facts of owners` business crediting instead of investment in good/sound projects and banks involvement in shady transactions through transit schemes, as a result, money return to the owners of banks or for fictitious capital increase of the credit organizations.

Breach of specified requirements by banks results in the fact that their licenses are suspended by the CB of the RF. Since 2013 amount of credit organizations with suspended licenses is more than 200, on some estimation, it is close to 300. This year suspending rate of unsustainable banks is 7-8 organizations per month, according to the megaregulator, work on detection and liquidation of unfair credit organizations is not finished.

Further development of the financial market will come on the background of external calls: long-term fall in average oil prices, low growth rate of the global economy, its delay in China, influence of brexit on the Russian financial system and economy in general, realization of structural reforms and monetary policy by central banks.

Certainly, the situation at the financial market does not satisfy anybody: the Government – because it leads to the slowdown of economic growth; the CB of the RF – because of growing distrust in credit organizations and financial market in general; and business – because of risks to lose funds in banks with suspended activities. Under current conditions the megaregulator is going to take some measures aimed to recover financial market sectors, among them:

• to limit amount of credits by the special normative standard Н25 for associated with bank bodies in order to prevent from crediting of owners` business;
• to raise minimal amount of bank equity capital to 1 bln RUB (currently 300 mln RUB), gradual raise of requirements will start with the beginning of 2018;
• to 0,75 percentage point increase normative standard of legal reserve requirement;
• to define criteria of credit organizations falling into the category of regional banks - raise of bank equity capital does not concern them, they will operate according to simplified regulation, will be limited by the credit projects rate and will not be able to carry out trans-border operations;
• to change drastically the resolution procedure: according to practice, it is cheaper to save bank than to pay to its depositors;
• to create the state fund, that will have access to capital of unsustainable banks, to take for resolution to the special governmental managing company, and to sell them after rehabilitation procedures by auction that helps full-rate return to the market.

However, banking risks still exist and during the investigation force to investigate bank, that contractor keeps an account in. Information and analytical system Globas-i provides all the necessary information on investigating bank, after analyzing data, generates the financial stability index of a bank, that helps to observe cooperation risks and realize the degree of influence on the contractor`s activity.