Организационное становление системы страхования вкладов в России

In line with the accumulative nature of the mandatory deposit insurance fund, the second source of fund growth in 2004 was the regular payment of insurance premiums by participating banks.

As the number of banks accepted into the system grew over the course of the year, 26 banks accepted into the system during the third quarter of 2004 were required to make premium payments. These banks paid premiums totalling 4.1 million rubles within the legal deadline.

The Agency identified no significant violations by banks of the procedures for calculating and paying insurance premiums during the third quarter of 2004. Four banks failed to transfer their full premium obligations for the third quarter of 2004 on time. The Agency’s demands that the outstanding balance be paid plus penalties were fulfilled within the relevant deadlines.

The assets of the mandatory deposit insurance fund are held in the Agency’s special account at the Bank of Russia. A report on the movement of the mandatory deposit insurance fund’s monetary assets during 2004 is included with this annual report. Income from the placement and/or investment of temporarily unallocated assets in accordance with the Agency’s policies will be credited to the fund after the payment of taxes and the distribution of profit under procedures determined by the Agency’s Board of Directors. It is expected that such income will total 41.7 million rubles.

None of the mandatory deposit insurance fund’s financial assets were utilized during 2004, in the absence of compensation claims on deposits.

In September 2004, in accordance with the Deposit Insurance Law, the Agency calculated potential indicators for the deposit insurance system in 2005. The evaluation of these indicators was based on the Russian Federation’s 2005 socio-economic development forecast, and specifically:
– an assumption of stable economic growth and the absence of grounds for a financial or systemic banking crisis in Russia;
– the experience of ARCO in the creation of a ‘local’ deposit guarantee system involving five banks, which yielded an estimation of the relationship between the potential for payments from the fund and the volume of depositor liabilities for a typical bank; and
– an analysis of the relationship between the volume of deposits in de-licensed banks and the volume of deposits in all Russian banks over the last 12 years.

A review in 2004 of the financial condition of all banks entering the deposit insurance system, in accordance with the rules laid out in federal law and normative acts of the Bank of Russia, was also taken as a further factor supporting the stability of the deposit insurance system.

According to the Agency’s calculations, the assets of the mandatory deposit insurance fund should be sufficient to cover the statistically predicted volume of deposit compensation payments in 2005. In this regard, there should be no necessity for the expenditure of funds from the federal budget to cover any potential deficit in the mandatory deposit insurance fund. The issue of the sufficiency of the deposit insurance fund’s assets was reviewed by the Agency’s Board of Directors.

In order to maintain the integrity (defence from inflation) and growth of the mandatory deposit insurance fund, the Agency places (invests) temporarily unallocated monetary assets on the financial markets, operating under the principles of reclaimability, profitability and liquidity.

During the reporting period, the assets of the mandatory deposit insurance fund were invested in state securities of the Russian Federation, in accordance with the Statute on the Investment of Temporarily Unallocated Monetary Resources of the Mandatory Deposit Insurance Fund for 2004, approved by the Agency’s Board of Directors.

Total investment income on the fund’s assets during the reporting period was 186.1 million rubles.

Total annual income from the investment of the fund’s assets in 2004 was 10.8%, which is comparable to the increase in value of shares in mutual investment funds with analogous investment policies (i.e., investment only in state securities).

		The Mandatory Deposit Insurance Fund In accordance with the Deposit Insurance Law, the Mandatory Deposit Insurance Fund forms the financial basis for the deposit insurance system. As of 1 January 2005, the fund included 4.623 billion rubles (see Figure 5). Over the course of 2004, the fund was formed primarily through transfers by the Russian federal state. The initial asset transfer was made by the State Corporation "Agency for Restructuring Credit Organizations", as mandated by Article 50 of the Deposit Insurance Law, and totalled 2 billion rubles. Of that sum, 1.894 billion rubles were in the form of monetary assets, while 106 million rubles were in the form of state securities. Moreover, over the course of the year the Russian Federation made further transfers, in accordance with the Federal Law On Recognizing the Annulment of the Federal Law On the Restructuring of Credit Organizations and Other Articles of Legislation of the Russian Federation, as Well as On the Procedure for Liquidating the State Corporation " Agency for Restructuring Credit Organizations". These transfers totalled 2.619 billion rubles.
		Figure 5. Asset growth of the Deposit Insurance Fund

		In line with the accumulative nature of the mandatory deposit insurance fund, the second source of fund growth in 2004 was the regular payment of insurance premiums by participating banks. As the number of banks accepted into the system grew over the course of the year, 26 banks accepted into the system during the third quarter of 2004 were required to make premium payments. These banks paid premiums totalling 4.1 million rubles within the legal deadline. The Agency identified no significant violations by banks of the procedures for calculating and paying insurance premiums during the third quarter of 2004. Four banks failed to transfer their full premium obligations for the third quarter of 2004 on time. The Agency’s demands that the outstanding balance be paid plus penalties were fulfilled within the relevant deadlines. The assets of the mandatory deposit insurance fund are held in the Agency’s special account at the Bank of Russia. A report on the movement of the mandatory deposit insurance fund’s monetary assets during 2004 is included with this annual report. Income from the placement and/or investment of temporarily unallocated assets in accordance with the Agency’s policies will be credited to the fund after the payment of taxes and the distribution of profit under procedures determined by the Agency’s Board of Directors. It is expected that such income will total 41.7 million rubles. None of the mandatory deposit insurance fund’s financial assets were utilized during 2004, in the absence of compensation claims on deposits. In September 2004, in accordance with the Deposit Insurance Law, the Agency calculated potential indicators for the deposit insurance system in 2005. The evaluation of these indicators was based on the Russian Federation’s 2005 socio-economic development forecast, and specifically: – an assumption of stable economic growth and the absence of grounds for a financial or systemic banking crisis in Russia; – the experience of ARCO in the creation of a ‘local’ deposit guarantee system involving five banks, which yielded an estimation of the relationship between the potential for payments from the fund and the volume of depositor liabilities for a typical bank; and – an analysis of the relationship between the volume of deposits in de-licensed banks and the volume of deposits in all Russian banks over the last 12 years. A review in 2004 of the financial condition of all banks entering the deposit insurance system, in accordance with the rules laid out in federal law and normative acts of the Bank of Russia, was also taken as a further factor supporting the stability of the deposit insurance system. According to the Agency’s calculations, the assets of the mandatory deposit insurance fund should be sufficient to cover the statistically predicted volume of deposit compensation payments in 2005. In this regard, there should be no necessity for the expenditure of funds from the federal budget to cover any potential deficit in the mandatory deposit insurance fund. The issue of the sufficiency of the deposit insurance fund’s assets was reviewed by the Agency’s Board of Directors. In order to maintain the integrity (defence from inflation) and growth of the mandatory deposit insurance fund, the Agency places (invests) temporarily unallocated monetary assets on the financial markets, operating under the principles of reclaimability, profitability and liquidity. During the reporting period, the assets of the mandatory deposit insurance fund were invested in state securities of the Russian Federation, in accordance with the Statute on the Investment of Temporarily Unallocated Monetary Resources of the Mandatory Deposit Insurance Fund for 2004, approved by the Agency’s Board of Directors. Total investment income on the fund’s assets during the reporting period was 186.1 million rubles. Total annual income from the investment of the fund’s assets in 2004 was 10.8%, which is comparable to the increase in value of shares in mutual investment funds with analogous investment policies (i.e., investment only in state securities).

The Mandatory Deposit Insurance Fund