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the Organization of anti-recessionary management of banks in the conditions of re-structuring of a banking system of the Russian Federation

Efficiency of anti-recessionary management is characterised by degree of achievement of the purposes of softening, localisation or positive use of crisis in comparison to the spent resources. Management development should be accompanied by the increase of efficiency defined by possibility of positive changes, presence of necessary resources and conditions of use of all arsenal of management methods.

It is possible to allocate the major factors influencing efficiency of anti-recessionary management to banks (rice 2.1)

a Fig. 2.1 Factors of efficiency of anti-recessionary management in KB

the Source: the Fig. 2.1 Is made by the author

reflects interrelation of factors of efficiency of anti-recessionary management. In the Russian practice of anti-recessionary management by banks the presented factors only begin the development. For example,

the big attention began to give to preparation of anti-recessionary managing directors at bankruptcy of the credit organisations and managers of anti-recessionary management, there was a methodology of monitoring of risks and crisis situations in banks, became the corporate governance and anti-recessionary motivation of activity of bank develops.

however in the conditions of re-structuring of a banking system of Russia in 1999-2003. Mechanisms of the state support, strategy and quality of anti-recessionary programs, efficiency, corporationism and anti-recessionary motivation poorly developed. Anti-recessionary management of the Russian banks was reduced to sanitation and bankruptcy of problem banks. Crisis of 1998 has distinctly shown absence at the Russian banks of mainstream AKU - preventive measures on nedopushcheniju to insolvency and an inconsistency. The analysis shows, that from all arsenal of methods and tools of anti-recessionary management bankruptcy procedures became the most applicable: Supervision and competitive manufacture. In the conditions of crisis neither banks of commerce, nor at Bank of Russia did not have first of all a stock of time for possible restoration of solvency of banks through application sanatsionnyh procedures.

sanitation is more effective procedure, first of all for shareholders and creditors of bank. Sanitation gives positive result only at real aspiration of owners and bank managements to restore solvency and steady work of bank, and also in the presence of the grant-in-aid adequate to the developed situation. In the course of carrying out of re-structuring problem commercial banks many of sanified banks have faced restrictions on delivery of credits - obligations to investors should be not less than 300 million rbl. In this connection practically there was no procedure of refinancing of banks, sanatsionnye credits stood out Agency on re-structuring, and the most part of actions of the profinanced banks was exposed subsequently at the auctions, i.e. commercial small,

regional banks independently could not return the state grant-in-aid. Sanirovanie at a stage of occurrence of crisis zatratno and it is inefficient neither for the state, nor for owners of banks, therefore the preference in carrying out of anti-recessionary actions was given to bankruptcy procedures. At carrying out of bankruptcy of loss all interested participants bear: shareholders, as a rule, lose committed facilities, budgetary payments are broken, time difficulties are tested by clients and creditors of bank.

Bankruptcy in Russia - favourable action in case of deliberate bankruptcy (in judiciary practice there are no proof precedents, such affairs are considered legally hopeless), preliminary deducing of a part of assets (a recognition wrongful actions at bankruptcy and the criminal liability for a large damage at a conclusion of assets it is noted only in KB "Triumph" of the Kirov area), or true swindle (the banks, similar KB "CHare").

the Banking market had no mechanisms of market self-control, therefore for restoration of normal functioning of system application of compulsory regulation (fig. 2.2 see) as a whole was necessary.

Quantity of the licences withdrawn for month in 1993-1999 Rice 2.2

1 - the Moscow banks

2 - regional banks the Source: [100.. 57]

Features of formation and development of bank sector have left traces and on behaviour of anti-recessionary procedures - liquidations, licence withdrawals. On rice 2.2 peak of liquidations is necessary on 1995-1996. In the beginning of 90th of of the politician of Central bank of the Russian Federation it has been directed on creation as it is possible bolshego numbers of small and average banks, at the expense of destruction and crushing of the former state specialised banks. In our opinion, at high concentration of the industry of Russia inadequacy of the created crushed banking system was obvious to maintenance of settlement-credit requirements of national economy. Licence withdrawals in 1999 concerned in bolshej to degree of big banks.

in the absence of experience and self-sanitation methodology, at mentality of a management of the banks which have believed in rescue of big banks by the state, tools of preventive financial improvement have appeared nedejstvenny. Proprietors of banks, supervising bodies have appeared neither economically, nor psychologically are not ready to realisation of a complex of measures on financial improvement at early stages of crisis.

what a technique of improvement and re-structuring have not offered in crisis, situation normalisation would be impossible without direct financial injections both for rasshivki payments, and for rescue of separate banks All schemes of a grant-in-aid operated in relation to certain banks, criteria of necessity of the help developed the Central Bank, having divided banks of commerce on 4 categories. As show given tables 2.1, 810 KB to 1.01.01. Had separate infringements of financial circumstances, 116 KB - tested serious financial obstacles. At the analysis of the given banks having in crisis financial squeezes and banks where the financial backing was not required, found out heterogeneity of groups and feature of application of tools rekapitalizatsii and maintenance liquidities (table 2.2). Crisis 1998. Has unequally mentioned large, basic and regional

banks, That specifies on mnogoukladnost a banking system of the Russian Federation and weak interrelation of separate elements of system

Quantity of separate categories of KB Table 2.1

to the KB Category On 1.01.1999 On 1.01.2000 On 1.11.2000
koliches

tvo

in % to

to action

jushchim

koliches

tvo

in % to

to action

jushchim

koliches

tvo

in % to

to action

jushchim

KB without lacks of activity 355 24,0 422 31,3 353 < /td> 26,7
the KB having separate lacks in

of activity

611 41,4 699 51,8 810 61,4
KB, testing

serious financial obstacles

206 14,0 86 6,4 116 8,8
the KB which are in a critical financial position 274 18,6 113 8,4 39 3,0
KB, Not presented the full reporting 30 2,0 29 2,1 2 0,2
Total operating KB 1476 100,0 1349 100,0 1320 100,0

the Source: http//www.cbr.ru

Data specify in increase in 2 and 3 categories of KB after crisis that testifies to low efficiency preventive and sanatsionnyh measures.

Financial circumstances of separate groups of KB in 1998 Table 2.2

Banking groups Kol -

in

Placing of means in SK Placing of means in assets Means

investors

the Sum of billion ru

.

In % to KB

ank. si

themes

the Sum of billion ru In % to KB

bank, si

themes

the Sum of billion ru In % to KB

bank.si

themes

the KB which are not demanding fin.pomoshchi 1006 57,3 89,2 321,9 31,1 18,2 34,9
1.mnogoprofilnye - - - - - -
2. Large 5 14,1 22,0 139,7 13,5 3,5 6,6
3. Basic 53 3,6 5,7 25,2 2,4 2,7 5,2
4. Regional 948 39,6 61,5 157,0 15,2 12,0 23,1
the KB demanding fin. The help 441 6,9 10,8 712,4 68,9 43,7 65,1
1.mnogoprofilnye 4 -12,8 19.9 145,7 14,1 8,0 15,4
2. Large 14 14,5 22.6 328,1 31,7 12,7 24,2
3. Basic 26 3,3 5,2 29,8 2,9 2,8 5,4
4. Regional 397 1,9 2,9 208,8 20,2 20,2 20,1
Total 1447 64,2 100 1034,3 100 61,9 100

the Source: [76, with 28]

Given tables 2.2 show, that the greatest support was demanded by big banks in which 31,7 % of assets and 24,2 % of contributions have been placed, the state help to them has been directed for removal of social intensity. To 1998 45 big banks have spent rekapitalizatsiju, 15 have taken advantage of credits of the Central Bank for liquidity maintenance. Four full service banks, reduced by 12,8 billion rub a shareholder's interest, were holders of 15,4 % of contributions. The majority of regional banks (948 KB) has not demanded a grant-in-aid. To 1998 55 regional banks have spent rekapitalizatsiju and only 11 have taken advantage of credits for liquidity maintenance. Besides, in the regional banks which have been not mentioned by crisis 61,5 % of a shareholder's interest and 15,2 % of assets of a banking system have been placed. Features of financial circumstances of banks in 1998 Have defined a direction of re-structuring of a banking system - a conclusion from crisis versatile universal and big banks without regional aspect and territorial features of the Russian Federation (the appendix 4 see). As a result of leaving of the small regional banks which have not received supports, there were without bank service many remote areas, where large bank business nerentabilen.

Anti-recessionary management of banks has been narrowly connected, was in direct dependence on actions of the anti-recessionary regulation spent by the Central Bank. The basic measures have been directed on maintenance of liquidity of big banks and payment facilities restoration that is reflected in Central Bank materials Actions of Bank of Russia on normalisation of position in a banking system in August - September, 1998

Banks of commerce used during the period with 10.08.98 on 05.10.98. Pawn, intraday credits, credits "overnajt" for the sum of 72,5 billion rbl. Overnajt predostvlen to 29 banks for the sum of 48,2 billion rbl., them them 47,7 billion rbl. - to banks of the Moscow region, thus rates reached from 250 % on 17.08.98. To 40 % on 30.09.98. In pawn

auctions 40 banks for the sum of 13,8 billion rbl. participated, the cutting off rate fluctuated from 55 to 150 % annual, at demands in 35-500 %.

Intraday credits daily used from 1 to 14 banks for a total sum of 4,5 billion rbl. it has been spent three multilateral clearings of mutual obligations to which all banks have been admitted, except banks with the withdrawn licence and the entered acting administrations. The detained payments for the sum of 30 billion rbl. have been extinguished thus, the fund of rest funds was reduced thus to 7,1 billion rbl. however it is not necessary to forget, that the currency issue for this period has made 25 billion rbl. Banks (40 of 12 regions) have taken part in repayment of arrears of interest under Central Bank credits, have been written off principal sums of a debt at a rate of 2,4 billion rbl., were written off debts of bank borrowers under the centralised credits which have been given out in 1992 94. These data testify to low efficiency of activity of the Central Bank of Russia as creditor of last instance and backwardness of market MBK (table 2.3).

Placing and attraction MBK in the Russian KB in 1998-1999 2.3

Data 01.

01.

98

01.

01.

99

Izme

nenie

%

01.

05.

99

Izme

nenie

in %

01.

09.

99

Izme

nenie

in %

Placing, in billion rbl. 57,3 53,4 -6,8 45,9 -14,0 47.2 2,8
In bank residents, in billion rub 32,2 30,7 -4,7 26,7 -13,0 24.4 -8,6
In bank residents, in % 56,2 57,5 - 58.2 - 51,7 -
In bank non-residents, in billion rub 25,1 22,7 -9.6 19,2 -15,4 22,8 18,8
In bank non-residents, in % 43,8 42,5 - 41,8 - 48,3 -
Attraction, in billion rbl. 70,9 108,0 52,3 104,4 -3,3 104,8 0,4
In bank residents, in billion rub 38,7 33,3 -14 26,8 -19,5 24,4 -9.0
In bank residents, in % 54,6 30.8 - 25.7 - 23,3 -
In bank non-residents, In billion rub 32,2 74,7 132 77,7 4,0 80,4 3,5
In bank non-residents, in % 45,4 69,2 - 74,3 - 76,0 -

the Source: [109, .106]

poorly developed markets of refinancing and interbank crediting (table 2.3) in the conditions of crisis did not promote decrease

risk of insolvency and aggravated a liquidity problem bankv. Work with MBK was accented on bank non-residents, the market differed unpredictability, absence of available assets and high interest rates.

Low efficiency of anti-recessionary programs is connected with absence by 1998 of methodology of a conclusion from crisis and strategy of work in KB in the conditions of system crisis. As a rule, actions of anti-recessionary management were reduced to financial injections, activization of interbank crediting and correspondence relations, re-structuring of loan and share portfolios. Nonconventional methods of work with investors and creditors - agreements of lawsuit (practised also at bank management ARKO), a cedation of requirements, a delay, the instalments of debts. For small banks the most comprehensible became prodazhadolgov or bank as business.

in crisis banks have faced organizational, personnel problems on work with investors, on receivables return. Actions for regulation of activity of bank regulation of work of exchange offices, capitalising interest cancellation under contributions, definition of the rests vnebalansovyh accounts, carrying out of audit of values and the documentation, creation of the commission on definition of a market price of subjects of realisation of assets, the organisation of payments to investors, work activization on repayment of credits assumed lending stop, a suspension of payments under deposits. Such tooling and management methods in the conditions of crisis is a characteristic example of the spontaneous organisation of work of collective of bank, realisation of strategy of withdrawal from bank of the rests of assets and absence of anti-recessionary motivation.

in crisis of 1998 anti-recessionary management was reduced to re-structuring of big banks under wing ARKO and to behaviour of procedures of bankruptcy, problem banks spent separate restrukturizatsionnye procedures under instructions GTU the Central Bank of Russia.

the Analysis of the domestic literature on re-structuring problems [37, 41, 56, 90, 93] shows, that more often the Russian banks relied on realisation of assets and change of organizational structure. And only for Oneksim - bank achievement of the arrangement and carrying out of serious actions for improvement of structure of balance is characteristic, it has not been transferred under procedures of bankruptcy or management ARKO and its example is closest to world practice of re-structuring. The operational experience with creditors-non-residents who have disagreed on bankruptcy procedures is interesting.

the scheme of re-structuring Oneksim of-bank assumed creation of the special companies on management and realisation of assets and procedure slijachnija with Rosbank. Oneksim the bank became the first bank which has achieved successful commercial re-structuring as a result of purposeful and consecutive work with creditors, based on trunk-call activity and a full financial transparency.

Features were observed and in application of tools rekapitalizatsii, as cheaper way of maintenance of bank in comparison with search of additional external sources. In world practice cases of attraction of money resources of new investors, including foreign, in the capital of sanified bank, especially in cases when the "problem" bank had illiquid, but were often marked by valuable assets. Full or partial change of the proprietor - a typical example of the methods applied in the Eastern Europe (Poland, Czechia and Hungary) when "problem" banks with rather developed filial network were on sale to large western investors.

in process rekapitalizatsii the special role is taken away to the state since sanirovanie by participation in the capital of re-structured banks gives to the government influence levers on bank management. Change of structure of the property and the subject of bank regulation and supervision of banks can be the intermediate form of such control.

process rekapitalizatsii in Russia, according to the Central Bank of Russia, has begun already in the middle of 1999. From 1.03.99 till 1.09.99 the cumulative capital of banks has grown on 42,3 mlrd, roubles (or more than twice) and has made 83,5 mlrd, roubles (82 % from precritical level). The reasons of growth of the capital were rekapitalizatsija operating banks and licence withdrawal from the insolvent banks which had the negative capital, 76 accordingly 76 and 24 % of an augmentation of capital of a banking system. But the decision of bank problems is more typical for Russia at the expense of clients. As well as earlier, defining role will play indirect rekapitalizatsija in the form of increase in incomes. Practically all big banks carried out internal re-structuring (see Table 2.4) the Characteristic of methods, Applied at re-structuring Russian

banks Table 2.4

Bank eankro

gstvo

"old"

bank

Lawful

transfer

assets in other bank

Rekapi

galizatsija

"new"

bank

Reali

zatsija

assets

Dosti

zhenie

soglashe

nija with

kredito rami and restruk turiza

tsija

passi

BOB

povy

shenie

likvid

nosti

balance

Optimi

zatsija

expenses

bank

Oneksim

bank

- + + + + + +
the credit Is Russian

Y

-

Impeks

the bank

Under

is operated

iem

ARKO

+ + + +
Menatep

Will entrust lnyj and

investits

ionic

bank

+ + + + +
Tokobank + - - + - - +

the Source: [108, with. 147]

Table 2.4 on an example of big banks reflects most often used methods of re-structuring - liquidation of bank and a transfer of assets, optimisation of structure of assets and liabilities, incomes and expenses and ignoring of possibilities of work with creditors and shareholders.

as shows world experience, increase in the capital of the banks which are in heavy position, seldom does without an active role of the state. Possibilities of the enterprises of a private sector on rekapitalizatsii the banks which shareholders they are, are small enough, in new conditions shareholders require extra means [1] . Entering of new means allows not only to improve liquidity of bank, but also to change structure of investments at the expense of a direction of the received means for profitable projects. Such way is most important at a high share immobilizovannyh assets and low liquidity of balance. Renewal of obligations in shares of participation in bank possesses that advantage that does not demand search of new means, but does not solve a problem of change of structure of assets and demands the consent of creditors.

process rekapitalizatsii depends directly on structure of shareholders of bank, their desire to keep bank, or, having commensurated possibilities, in time to sell the business. These processes are well traced on an example of banks with various state and private participation.

the heavy situation with the budget does impossible draught on funds of the federal budget on rekapitalizatsiju even government banks. Means of budgets of subfederal levels which can be directed on support of the banks connected with local administration, also hardly can be great. In view of a lack of funds the help in a traditional kind can arrive too late. For this reason support of local authorities is shown indirectly,

for example, through concentration in bank of budget accounts and accounts of government facilities.

banks with the state participation gave preference to part or controlling interest sale to new shareholders. There are precedents of bankruptcies of banks with the state participation when shareholders have refused execution of obligations. Largest of such bankruptcies can name bankruptcy of Unicommercial bank in which to subfederal authorities (the government of the Moscow area) belonged more than 51 %. During the crisis period shareholders did not have means for bank support. Except Unicommercial bank it is possible to name KB "Soto" (Ioshkar Ola, 38 % of the capital belonged to federal authorities, 16,1 % - subfederal), the Chuvash people's bank ( Cheboksary, federal and local authorities posessed 47,9 % and 3,7 % of the capital of bank accordingly), KB the Trade-bank (100 % belonged to federal authorities).

In preservation of banks the combination of work GU the Central Bank with problem bank and transfer of budgetary streams in bank helped. The typical example - the special design bureau-bank which difficulties have begun long before crisis of 1998 However because of support of local authorities bank in second half of 2001 has managed to find sources of means for rekapitalizatsii, and creditors have not incurred losses in bank. Sale of share holdings was widely used. For example, bank "NoOo??a??" has sold actions to the Russian residents.

the analysis of coordination of shareholders, their readiness to bring in the capital new means is not less important. A typical example - the Moscow world bank (MMB). From the end of 1998 and till the end of 2001 The relation of the capital to assets MMB did not exceed 5 %, and the bank has been compelled to place very conservatively resources, basically on accounts in foreign banks. However even such policy did not provide performance of the specification of sufficiency of the capital, profitability of bank decreased and there was no increase in the capital at the expense of unallotted profit. The bank has made the increase in the capital first after crisis only in the July, 2000, almost two years later after crisis, in

result the bank began to carry out sufficiency factor, but the big open space for development has not received. The capital structure promoted that on the middle of 2001 (before merge to Bank of Austria) MMB was characterised by the lowest value of capital adequacy ratio in comparison with banks with more than 90 %-s' foreign capital. Thus, in crisis, presence of the dominating shareholder, ready to support, promotes faster permission for difficult situation bank.

In the conditions of crisis it was spent rekapitalizatsija banks at the expense of public funds, the basic participant rekapitalizatsii was ARKO (the analysis of expenses on rekapitalizatsiju in point 2.2 and appendices 12,13). At re-structuring of "problem" banks in Russia in 1998 - 2000 basically the method of the state participation in the capital in the form of allocation subordinirovannyh credits owing to what, probably, banking system improvement has been spent insufficiently effectively was used only.

as to private banks of commerce their shareholders to the last struggled for bank preservation, hoped for the help of the state and Russian perhaps. The greatest quantity of bankruptcies among small and average banks, whose shareholders could not rekapitalizirovat bank or sell as business. Growth of the capital of a banking system is, undoubtedly important part of work on increase of its reliability, however it all the same not a body of bank re-structuring. Bolshee value of the capital (not only absolute, but also in relation to assets) not always speaks about bolshej to reliability of banks.

the problem of undercapitalization of bank sector however would not be great, bank crisis development is improbable in the conditions of sound liquidity. As a rule, bank crises are shown as liquidity crisis in which basis can lay, and loss by capital banks can and not lay. The analysis of separate banks spent

by Rating agency the Interfax, shows, that position of the largest banks often appears much more difficult, than at averages on the size of banks. Traditionally size of bank contacts bolshej diversifikatsiej, however in Russia the group of the largest banks serves very much big clients, banks appear actual " " The banks which are carrying out functions of a financial settlements centre and a financial kernel of group, not having possibility for real diversifikatsii risks

Many of new bankrupts could to brag of enviable indicators of sufficiency of the capital and quality of an advances portfolio. Problems at banks in crisis of 2002 - IBK, Inturbanka, the Incorporated industrial bank and the Rhyme-bank have been connected with unstable obligations and liquidity infringements. The conflict of shareholders, leaving of one big client have appeared are capable to destabilise bank position appreciably. This party of bank crises traditionally did not involve special attention of analysts and regulating bodies. It has been recognised, that many Russian banks, as a matter of fact, are "pocket", serving the founders and the companies connected with them. After crisis of 1998 infringement of specification 8 by banks of commerce became mass (59 KB from 100 of the largest). In group of 20 largest banks at eight banks the specification appears above in four and more times, and at two comes nearer to 1000 %. Obligations to the largest shareholders are unsafe for bank. In case of the conflict of shareholders, unexpected change of priorities of shareholders or at occurrence of threat of bank crash presence of the large informed creditor considerably increases risks for foreign creditors. Problems of communication of bank with shareholders and big clients also are a subject of anti-recessionary management.

among methods anti-recessionary justiceslenija banks in the conditions of re-structuring especially allocate the decision of a problem of improvement

an asset quality and especially hopeless credits. Purchase under the fixed or reconsidered price or transfer of idle assets (overdue credits, receivables, the illiquid securities, not realised real estate) in the order of the sanifying organisations is the most effective tool of re-structuring. The Governments of many countries established special corporations on realisation of bank assets. Such corporations have been created in the countries with banking systems absolutely different in structure and levels of economic development, for example, in the USA, Sweden and Thailand.

in Russia write-off of a part of "bad" assets against the reserves created earlier under possible losses and depreciation, connected with these assets is more often applied. The interbank exchange of one assets for others, more comprehensible to the given bank, through system of a multilateral interbank asset swap and passives is less actively used. The reason for rather small use of this measure in known cases was the crisis condition of all banking system, and in a case sanirovanija separate bank in stabler environment potential possibilities which are opened by an exchange of one assets for others, are more considerable. The important direction of expansion of a working part of assets is decrease in norms of obligatory reservation and obligatory economic specifications.

at carrying out of anti-recessionary procedures with passives of problem bank the most comprehensible step is attempt of achievement of the arrangement with creditors: About renewal of their urgent debts in participation in the bank capital, term prolongation istrebovanija an accounts payable, the instalments or revision of the schedule of paying interest, accounts payable conversion in debt securities (bonds, deposit certificates, bills - "securitization" of debts).

All listed actions with passives were spent by large Russian banks together with ARKO.

In the course of re-structuring of passives the important role is played by introduction of the moratorium on execution of the claim requirements shown to accounts or property of bank, for action of the plan of financial improvement. Such decision can be accepted as legislatively (and to extend on all banking system or banks with accurately specified characteristics), and voluntary by creditors of bank. In the latter case achievement of the unanimous decision of creditors is especially important. The establishment of the legislative moratorium was used at supervision introduction in problem banks for the term of 3 months.

the most comprehensible to the Russian banks of a steel of possibility of sanitation and reorganisation, but their use has not been connected with procedures of early prevention of bankruptcy that was reflected in the presented quantitative characteristics.

the Characteristic of indicators of bank branch in 1996-2000 gg Table 2.5

Indicators 01.96 01.97 01.98 01.99 01.00 01.00 by 01.96 in %
Kol-in

the registered KB

2598 2601 2555 2483 2378 91,5
in operating KB 2295 2029 1697 1476 1349 58,8
in KB with the withdrawn licence 303 570 852 1004 1028 339,3
in KB, Liquidation subjects 300 569 852 1004 1042 347,3
In t.ch it is independent 66 120 135 135 100 151,5
In t.ch through bankruptcy procedures 30 152 366 558 667 2223,3
Reorganization - 294 319 326 338 -
Including merges - - - - - -
joinings - - 20 23 27 -
transformations in

branches

- 294 299 303 311 -

the Source: it is made by the author by data http//www.cbr.ru

Given tables 2.5 specify in features of use of methods of anti-recessionary management:

1. There is a log of delay of introduction of anti-recessionary procedures. Mass licence withdrawal is observed already after crisis, with the same delay bankruptcy procedures are entered also, reaching catastrophic figures for a banking system into 2223,3 % in relation to 1996. This indicator characterises Law delay About an inconsistency (bankruptcy) of the credit organisations. For 1999 licences at 130 banks of commerce, from 01.01.00 for 01.09.00 at 22 banks are withdrawn. At end of the first stage of re-structuring on 01.01.01. At 806 KB (37,9 %) the licence has been withdrawn, 1311 banks that testifies to duration of terms of liquidation of banks operated. At the second stage of re-structuring in 2001-2002 32 KB have been compulsorily liquidated, 4 are reorganised by joining, 1 bank has been liquidated voluntary [2] ^

2. Bankruptcy procedures were applied only to half of the banks demanding liquidation (55,5 % in 1999, 64,0 % in 2000.), other banks had no bankruptcy signs so at application anti-recessionary, sanatsionnyh actions in time could be restored;

3. reorganizatsionnye actions were applied basically in the form of transformation to branches of other banks (35 % of banks with the withdrawn licence in 1998., 30,1 % in 1999., 30,2 % in 2000.) There was no merge. In our opinion, these processes characterise territorial expansion to the Russian bank business. Besides, transformation to branches concerned small and average regional banks, big banks united capitals by joining (2,3 % in 1999., 2,6 % in 2000). Only at 72 banks (20,3 %) the financial position has improved.

in Russia the essence of financial improvement is reduced to sanitation of actually gone bankrupt debtor. In 1998 352 plans of financial improvement on the banks out of time satisfying the requirements of creditors and having insufficient

a shareholder's interest have been considered. Sanitation plans are developed by banks independently when sufficiency of a shareholder's interest decreases to 2 %, in the international practice it is an external sign of bankruptcy. The analysis of data carried out by the author on the separate banking groups, participating in sanitation (see Table 2.6), specifies in low efficiency of independently spent sanitation, absence of methodology and experience of drawing up of plans of sanitation.

carrying out of financial improvement of KB in 2000 Table 2.6

Banking groups On

01.01.

00

% from

dejst.

KB

On

01.04.

00

% from

dejst.

KB

On

01.07.

00

% from

dejst.

KB

On

01.09.

00

% from

dejst.

KB

Have the bases for realisation of measures on

to financial improvement

160 11,8 156 11,7 141 10,6 133 10
plans on

Are given financial improvement

161 11,9 168 12,5 144 10,7 78 5,8
work on realisation

sanitation

278 20,7 243 18,1 212 15,8 197 14,6
Have eliminated the bases on

to realisation of measures on

to financial improvement

49 3,6 56 4,2 71 5,3 78 5,8

the Source: it is made by the author by data http//www.cbr.ru

the cited data correspond to the second stage of re-structuring when work on emergency rendering assistance to banks and compulsory sanirovaniju has been finished. The big share of the KB requiring financial improvement (11,8 % from number of operating banks) testifies to necessity of working out of self-sanitation at early stages of crisis in bank. GU the Central Bank in the reports 3 recognises discrepancy of the conclusions about a reality of plans of sanitation to Methodical recommendations about an order of an estimation of actions for financial improvement credit

the organisations. In plans of sanitation banks overestimate expected effect from plan realisation, underestimate expenses for sanitation carrying out, poor quality of a valuation of assets, absence of an estimation of development of business of bank, reception of stable sources of the income in sredne - and long-term prospect is marked.

not all forms of the prevention of bankruptcy were extended. Appointment of the Central Bank of acting administrations was spent in 1999 only in 8 banks of commerce, them them 7 passed a period of survey operation for transition under management ARKO.

higher efficiency of financial improvement at the second stage of re-structuring is characterised by absence in 2002 The banks of commerce detaining payments of clients, from 25 banks with withdrawn licence 13 had no card file of not paid calculation documents. Perfection of tools of financial improvement is connected with business planning development in banks, expansion of function of supervision, introduction kriterialnyh estimations.

a sanitation main objective should be rekapitalizatsija bank by capital reorganisation or transition of the property rights from inefficient owners to more effective. In the course of financial improvement the procedures connected with reduction of an authorised capital of bank at decrease of size of a shareholder's interest below registered, that are carried out urged to have stimulating influence on proprietors of problem banks for acceptance of timely measures on financial improvement for the purpose of capital base preservation, (in 1998 only 18 banks have reduced ustavnyj the capital, and 70 have completely lost a shareholder's interest). In our opinion, the reconstruction of the capital regulated by the legislation, is insufficiently effective. In the international practice of one of forms rekapitalizatsii capitalisation of means of creditors by their direction in ustavnyj

the capital is. Point 2 of article 8 of the law 40-FZ provides draught on funds of creditors for entering in ustavnyj the capital, however is not provided, how liabilities of bank before the creditor will stop, made the decision to become the shareholder of bank, after all the creditor loses the right to satisfaction of requirements in case of a recognition of bank the bankrupt.

on low mobility of anti-recessionary management in the conditions of re-structuring of banks specify tightened procedures of liquidation of KB (see Table 2.7)

Terms of anti-recessionary procedures Table 2.7

Credit

the organisation

License withdrawal 1 Vvede

nie

it is temporary

j

administ

portable radio sets

the Announcement

Introduction of competitive manufacture Likvi

datsija

Tokobank 31.08.98 08.05.98 29.12.98 13.01.00
Oneksim the bank 01.07.99

18.11.99

is suspended by the bankrupt

the order

merge
Mosbusinessbank 02.07.99 18.01.00 prisoedi

nenie

Imperial 25.08.98 26.05.00,

17.04.00

the decision

is cancelled

Inkombank 29.10.98 01.02.00 Konkursi

oe

an arbitrariness

stvo

Menatep 18.05.99 29.09.99
the Favourite 23.10.95 13.01.99 16.02.00 prolonged on 6 mes

the Source: It is made by the author by data http//www.cbr.ru

Of the resulted data of the table it is possible to find out features of carrying out of procedures of anti-recessionary management in the big banks which have not passed under management ARKO. Terms of liquidation of bank already after licence withdrawal exceed 2-3 years, meanwhile in banks with withdrawn

means of the enterprises and the organisations for the sum of 32,3 billion rbl., contributions of the population of 12,3 billion rub were the licence in 2000 according to estimated balances, involved MBK 66,0 billion rbl. the competitive weight at a rate of 3,3 billion rub, from which 31 % the-money resources listed by the Central Bank on account of means of rest funds, the rests on corresponding accounts (on 01.01.99 the share of these means made about 50 %) On 01.08.00 has been generated. Expenses on administrative - economic needs of competitive manufacture for so long period eat a considerable part of the realised assets. On liquidation of 390 credit organisations on 01.08.00

4

izrashodovanno 809 million rbl. that has made 24 % from competitive weight.

the general size of the realised property in relation to the property considered in intermediate liquidating balances is lowest and made on 01.08 2000. 5,2 % (on 01.01.99 4,5 %). On repayment of requirements of creditors on 01.08.00 istracheno 2,5.. Average percent of repayment of requirements of creditors of 18 % from the sum of the declared and recognised requirements of all turns. 140 banks have paid off on 80 % with private inkladchikami, in 18 banks competitive managing directors completely have satisfied requirements of creditors. From 57 % on 01.01.99 to 11 % the share of offsets on 01.08.00 was reduced at carrying out of competitive manufacture. Calculations with creditors could spend 141 bank for 01.01.99 years and 390 for 01.08.00 years 5 .

There is weak a control over efficiency of collecting of receivables. The mentality of the Russian debtors has negative colouring: in Russia it is accepted to forget the-state about debts has corrupted with immemorial write-off of debts of the enterprises, the whole branches of the unprofitable enterprises have grown. Problematic there is an organisation of work with creditors. Absence of an operational experience not only from mass-media, advertising, application of methods of public relation, but also

4 Data of department of licensing and financial improvement of the credit organisations of the Central Bank of the Russian Federation 5 According to Inter-regional public organisation of anti-recessionary managing directors affects at bankruptcy of the credit organisations

elementary neglect clients, infringement of interests of separate creditors.

the status of arbitration managing directors (the individual businessman, the accountable Central Bank and FSFO, the civil servant) has features. The anti-recessionary managing director is subordinated to two regulating and supervising bodies that tightens and complicates work. Improvement of procedures of certification of arbitration managing directors, since is necessary. The lawyers who do not have a practical operational experience in bank, not knowing features of bank business and accounting become them. The Central Bank of Russia should have staff of anti-recessionary managing directors, whose experience is systematised and generalised. For increase of efficiency of liquidating procedures according to A.V.Vinogradova it is necessary, that as arbitration managing directors could work not only physical persons - businessmen, but also large management companies that is used in world practice, reduces costs, enhances the responsibility [38]. The market of bankruptcies presented by arbitration managing directors, having licences and the commercial, legal structures which are engaged in bankruptcies on "stream" has the features. Such activity justifies itself as the command of highly skilled lawyers is required to the appointed arbitration managing director, bookkeepers, analysts, auditors. Efficiency of activity of such commands on a constant basis it is ready above at anti-recessionary management of a big bank.

there are blanks in legal base. So, the current legislation does not provide an interdiction for fulfilment by the credit organisations of the transactions directed on satisfaction of requirements of creditors, from the moment of licence withdrawal prior to the beginning of liquidating procedures. It allows a management of banks at which the licence is withdrawn, to their creditors and debtors to carry out separate transactions which obviously go to a damage to interests of a lump of creditors and investors. Strengthening of the control over similar transactions both before licence withdrawal, and after it from an acting administration and the arbitration managing directors, having the legislative rights to cancellation of transactions and contracts is necessary

. Functioning of institute of creditor committee is imperfect. The mechanism of the control over activity of the arbitration managing director from creditor committee while it is optimum structure for performance of a problem of the control over activity of managing directors is insufficiently accurately registered.

the Current legislation, the law About an inconsistency (bankruptcy) of the credit organisations, as a matter of fact, is aimed at carrying out of procedures of competitive manufacture as supervision introduction at already withdrawn licence does not allow arbitration operating to restore bank activity in a reality. An exception the banks which are carrying out at a stage of supervision reorganisation in the form of joining and merge (Oneksim make-bank, Mosbusinessbank). As amendments to the Law 40-FZ change of the basis for acting administration appointment - sufficiency of a shareholder's interest in the range from 2% 8 % is made.

Besides, in the Law term of carrying out of voluntary or compulsory liquidation after licence withdrawal from KB is not designated. In the Russian anti-recessionary regulation measures on compulsory liquidation through procedures of licence withdrawal, bankruptcy and voluntary liquidation are divided, possibility of voluntary initiation of bankruptcy is provided. In our opinion voluntary liquidation use is connected with absence of high-grade institute of sales of bank as business and economic stimulus to reoganizatsionnym to measures.

nonacceptance by a management and proprietors of bank of timely measures under the bankruptcy prevention on norms of the current legislation (item 56 GK, item 195-197 UK, st 14,50 40-FZ) provides responsibility, including criminal, but has declarative character and is applied on

to practice extremely seldom (an exception banks "" make, whose management already left on freedom, bank AKB "", whose management is condemned for 5 years for plunder of 43 billion rbl.)

the Valuation of assets is the important component of asset management. The realistic estimation is important not only for proprietors of bank, but also for new investors of bank, carrying out of procedures of reorganisation, transition under management to specialised institutes (to bridges-banks, ARKO), sales of a part of assets. At negotiating it is necessary for bank management to find balance between a ceiling price of assets and attractive enough conditions for both parties with a view of fast asset sale or bank as business. There is a weight of techniques of an estimation in the foreign practice, not always comprehensible to the Russian conditions (methods of updatings, profitable, zatratnyj approaches, etc.) The techniques offered ARKO. Experience of an estimation of banks of commerce in the conditions of re-structuring features of an estimation of banks are not generalised, specified at merge and joining [88]. There is opened a granting problem in the Central Bank of the doubtful reporting, especially according to a shareholder's interest, bank assets. It is necessary legislatively to allow for the Central Bank to make asset revaluation.

one of re-structuring problems is preservation and expansion of bank business in territories of regions. With leaving of such specialised banks as SbS-Agro, reduction of branches of the Savings Bank many remote areas, especially a countryside remain without bank service, there are problems of calculations.

in the Russian banking sector the tendency to heterogeneity of a banking system is accurately defined. The market is diverse to various signs: On an accessory to the state structures (469 TO on 2001), to the size of a shareholder's interest, the size of assets (43,9 % of banks have assets to 1 billion rub), territorial placing (in Moscow 47,1%). The second level of a banking system is presented to Russia

by several banking groups, non-uniform on the structure: government banks and banks with state participation, sistemoobrazujushchih banks, banks with participation of foreign capitals, regional banks [3] . In our opinion it is necessary to consider a principle mnogoukladnosti a banking system, feature of separate banking groups by working out and realisation of concepts of re-structuring and modernisation.

conclusions: 1) the analysis of practice of anti-recessionary management in the conditions of banking system re-structuring specifies in insufficient level of efficiency, default of principles of efficiency, flexibility and a strategic orientation in anti-recessionary management; 2) absence of a government program on early prevention of bankruptcies of the banks of commerce, the developed methodology of a conclusion from crisis at level of separate bank and system of banks of commerce has led to use only liquidating methods and tools of anti-recessionary management; 3) absence of budgetary funds and the state system of protection of the creditors, aggravated with a panic of investors has led to initiation of bankruptcies as from creditors, and the Central Bank of Russia; 4) feature of re-structuring of bank sector was absence sistemnosti and first of all in re-structuring of the second level of a banking system, the principle of multistructure construction, regional and territorial features of Russia was not considered.

2.2

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A source: DZJUBAN SVETLANA VIKTOROVNA. ANTI-CRISIS MANAGEMENT OF COMMERCIAL BANKS IN THE CONDITIONS OF RESTRUCTURING THE BANKING SYSTEM. Thesis for the degree of candidate of economic sciences. Orenburg - 2003. 2003

More on topic the Organization of anti-recessionary management of banks in the conditions of re-structuring of a banking system of the Russian Federation:

  1. Chapter 2 the Role of anti-recessionary management of banks of commerce in the conditions of re-structuring of the Russian banking system
  2. DZJUBAN SVETLANA VIKTOROVNA. ANTI-RECESSIONARY MANAGEMENT of BANKS OF COMMERCE In the conditions of BANKING SYSTEM RE-STRUCTURING. The dissertation on competition of a scientific degree of a Cand.Econ.Sci. Orenburg - 2003, 2003
  3. Frameworks of interaction of anti-recessionary management and banking system re-structuring
  4. Efficiency of activity of Agency on re-structuring of the credit organisations of the Russian Federation in the field of anti-recessionary management
  5. the Maintenance of system of anti-recessionary management of banks of commerce and its development at the present stage
  6. 3.2 Directions of development of anti-recessionary management in banks of commerce
  7. Essence, necessity and functions of anti-recessionary management by banks of commerce
  8. the Analysis of practice of anti-recessionary management of regional banks of the Orenburg area
  9. 1.1. Preconditions and results of re-structuring of a banking system in the Russian Federation
  10. Chapter 1 Theoretical bases of anti-recessionary management of banks of commerce
  11. Chapter 3. Development and perfection of the mechanism of anti-recessionary management by banks of commerce
  12. System model of management of the noncommercial organisation with use of tools of anti-recessionary management
  13. 2.3. Re-structuring of a banking system and creation krupnyhregionalnyh banks - as a condition of the decision of a problem of the investment by bank.
  14. System of indicators of an estimation of activity of the noncommercial organisations in the conditions of realisation of anti-recessionary strategy of development
  15. Chapter 2. Ways of perfection of process of re-structuring of microlevel of a banking system in the Russian Federation
  16. Chapter 3. Some features of business planning in the course of re-structuring microlevels of a banking system of the Russian Federation
  17. 3.1 Methodical approach to strategic management of the noncommercial organisation with use of tools of preventive anti-recessionary management
  18. the Anti-recessionary policy of the states in the conditions of economy monopolisation
  19. Chapkina Elena Gennadevna Osobennosti. of re-structuring of the Russian banks at the present stage of reforming of a banking system. 08.00.10 Finance, monetary circulation and the credit. The dissertation of a pas competition of a scientific degree of a Cand.Econ.Sci. Moscow -, 2004 2004
  20. 1.3. Necessity and features of anti-recessionary management of stability of the enterprise in market