Deposit Insurance Agency expects to end year in the black, despite bank failures
MOSCOW. Dec 5 (Interfax) - The Deposit Insurance Agency (DIA) will close 2013 in the black, despite two of the biggest bankruptcies in the history of Russia's deposit insurance system - Master Bank and Pushkino Bank - that resulted in payouts of 31.3 billion rubles and 20 billion rubles respectively, DIA deputy CEO Andrei Melnikov said at a meeting with analysts on Wednesday.
The DIA has already taken in about 60 billion rubles in contributions in 2013 and will receive about another 13 billion rubles by the end of the year, VTB Capital said in a research note following the meeting. Overall payouts on 22 insurance claims, including Master Bank and Pushkino, amount to 70.5 billion rubles.
The DIA now has about 185 billion rubles. The agency expects to receive 81 billion rubles in contributions from banks. This is enough to cover risks in the baseline scenario, but even if payouts increase dramatically the agency does not intend to turn to the government. The agency can raise five-year financing from the Central Bank of Russia, and as a last resort raise the contribution rate to the deposit insurance fund from 0.1% to 0.3% of deposits for up to two quarters, VTB Capital said.
The DIA's funds are now invested in OFZ federal government bonds (about 40%), corporate bonds and cash. The bankruptcies of Pushkino and Master Bank did not result in any major change to the structure of the portfolio, and even if payments to depositors increase the agency will prefer CBR refinancing to closing its positions on the open market, VTB Capital said.
