What is sanation of the bank? Definition and meaning of the word - sanation. What is sanation and why is it so important for a bank and depositors? Should I be afraid of this procedure and how to behave to the clients of the bank, which "rescue"?
Winter of 2013, and after it and all the next 2014 were marked by experts as complex for the country's economy. At the same time, inspections of commercial institutions by the Central Bank increased, as a result, many financial organizations lost their license. The numerous violations of RF legislation by commercial banks were revealed, and some of them closed forever.
Among the population began to grow panic, and scared by the situation, citizens began to massively withdraw deposits. Due to this, those banks that have never experienced problems either with the legislation, or with liquidity have suffered. In this regard, the state mentioned such a measure as sanation. What it is? Let's try to figure it out.
"Sanation": definition, meaning, translation
Translated from Latin sanatio means "healing". In the banking sector, the meaning of the term "sanation" means a set of measures taken to improve the financial condition of the bank. Simply put, this is to prevent a bankruptcy of a financial institution.
Reorganization measures consist in depriving the bank of illiquid ones, reducing the number of employees, restructuring the organization's payables and attracting investors.
Which banks fall under the procedure?
The procedure for the sanation is strictly regulated by the legislation of the Russian Federation. Financial rehabilitation is conducted to avoid bankruptcy when it is really possible.
Reasons for rehabilitation are as follows:
1. The bank plays an important role in the economy of the state. Significance at the regional level is also taken into account, in most regions or republics there are local structures that are more important than federal ones.
2. The bank is working stably, its affairs are transparent, and temporary difficulties are not a system. Such situations are possible when depositors, being under the influence of the media, begin to panic and provoke an outflow of assets. As a result, a financial institution faces a lack of liquidity from its independent reasons. In such cases, the state takes measures to rescue the bank so that it does not lose the license, and depositors - their money.
Who is a sanatorium?
The Central Bank of the Russian Federation together with the Deposit Insurance Agency decides on the need for financial rehabilitation of the institution. Then the management of the operational parallel bank is transferred to the hands of the DIA. This is a temporary measure taken during a search for a healthcare provider for a financial institution. The latter at this time is issued permission to restructure payables.
Who is a sanatorium? Let's try to give the notion of definition. The redevelopment involves transferring the management of a problem institution in accordance with a given investor, while the DIA removes the authority. An investor is a sanatorium, a bank manager for a period of crisis situation. Sometimes such a leader becomes the Agency.
The future sanatorium poses high demands, preferably that this organization already had the experience of financial rehabilitation. Its reliability is an indispensable condition. As a result, a bank that needs salvation, gets help from three organizations at once - DSA, the Central Bank and a private investor. The Central Bank additionally provides the bank with a stabilization loan at a minimum rate. The total loan repayment term is about 15-20 years.
What is a sanation of the bank for its competitors?
This is primarily to ensure that customers do not lose confidence in credit institutions. If one bank does not receive the necessary assistance and becomes bankrupt, the neighbor automatically receives the same problem with assets due to an increase in panic among the population.
In addition, the bank, which became a sanatorium, receives a share in the authorized capital of the victim, the authority of the authorities after the rehabilitation passes into his hands, as well as all customers.
How long will it run?
The dates of the sanation measures are 18 months. The procedure may be extended by the arbitral tribunal, but not more than six months.
What is the benefit of the procedure?
The sanction procedure gives the financial institution the opportunity to put its affairs in order, despite the low solvency. Customers often do not experience any inconvenience and continue to use the services of the bank in the former mode. With third-party financial support, banks continue to pay interest on deposits and provide loans to the population.
Because the bankruptcy process does not start, the jobs in the institution are kept, and there are no cuts. Sometimes the bank still simplifies the management apparatus, but only after a thorough analysis that proves that the state is unreasonably "bloated".
What is a sanation for the Agency for saving deposits? This is a way to save money and time. AW will also win due to the sanation. Bankruptcy of the bank is not favorable to the DIA, since in this case it is the Agency that has to pay the amount of insurance indemnity to the affected depositors.
How is it reflected on a jar?
This issue is disturbing for many clients of banks that have undergone a rehab. What will happen to their funds, when the remedial measures will end? Suddenly, sanation will not lead to the desired result, and the bank will go bankrupt?
First of all, the decision to carry out the rehabilitation is taken in those cases where prevention of bankruptcy is recognized as possible. Then the bank allocates as much money for rehabilitation as necessary to bring its cases in order. To date, all financial institutions that have recovered, successfully coped with temporary problems and continue to function.
But since for the rehabilitation most often involves an investor, who eventually becomes a new owner, after the completion of financial healing, he has the right to dispose of the bank at his own discretion. His right to change the concept of a business model, make changes to the brand, product line, and even change the team.
How to behave to a client?
What is a sanation of a bank for its clients? What should a person do if he or she has become aware of the rehabilitation of his bank? As a rule, this issue is most worried by depositors.
Do not worry. The bank will not liquidate, and deposits and accounts will not go away. Rather, on the contrary, if the financial institution got on the path of recovery, then bankruptcy with it will certainly not happen. Even if you freeze all assets, and hence your customer deposits, you can not worry about the money. They will not go anywhere and will definitely return to the client after some time, when the bank will bring the matter to order.
Moreover, often after the completion of the reorganization, a new owner appears in the institution, which offers its strategy for development of the bank, makes proposals for the services provided and changes the approach to clients. Therefore, it is not necessary to panic and try to change the financial institution, since after the end of the measures clients often only win.
In our country rarely remember what sanation is. Rescue measures of the bank are used to fulfill its obligations to customers. It is not worthwhile to flirt with sanation, but to show interest in the main bank, in which funds and savings are kept, is important and necessary.