Dear Colleagues, Ladies and Gentlemen!

The Deposit Insurance Agency state corporation presents to the banking community, financiers, legal scholars, researchers and the general public its Annual report for 2006. The report analyzes in detail the operations of the deposit insurance system, the formation and use of the mandatory deposit insurance fund, and covers the activities of the Agency as a corporate bankruptcy trustee (liquidator) of credit institutions.

The document demonstrates dynamic development of the deposit insurance system, which began to fully cope with its tasks and operate in stable regime. Nine insured events, which took place in 2006, confirmed the mechanism for reimbursement of insured depositors of failed banks has been streamlined: not a single payment delay or nonpayment of claims has been reported. High economic growth rate and strengthening banking system allowed to raise deposit insurance coverage limit from 100 to 190 thousand rubles in 2006. That considerably enhanced trust of our citizens to the banking system of Russia and resulted in an active inflow of household deposits to banks.

In 2006 the Agency worked to create an efficient bankruptcy management (liquidation) system. Large-scale activities were undertaken to recover assets, preserve and increase their market value, and measures were taken to expose and contest dubious deals. At the same time the Agency succeeded to considerably decrease average bank liquidation costs.

The implementation of the Agency’s tasks became possible also due to productive interaction with legislative and executive authorities and the banking community.

On behalf of the Board of Directors of the Agency I would like to express my firm conviction that high professional skills of its staff will promote continued and successful progress towards the creation of an efficient system of protecting the interests of creditors of insolvent banks.