State Duma allows deposit insurance regulator to buy stable bank shares
MOSCOW, December 23 (RAPSI) – The State Duma has adopted amendments that would allow the Deposit Insurance Agency (DIA) to buy shares of banks that are members of the deposit insurance system, RIA Novosti reported on Tuesday.
The bill, which was adopted in the second and third readings, would amend the law On the Insurance of Individuals’ Deposits with Russian Banks. The DIA would be able to buy shares (equity stakes) of banks based on government directives. Regulations on the size of non-monetary contributions to the bank’s share capital and the obligatory evaluation of property to be contributed to the share capital would not be applicable to such transactions. The payments procedure would not be applied to transactions carried out in accordance with the law On Bankruptcy (Insolvency).
The State Duma previously adopted in the first reading amendments that would enable the government to use the DIA to increase the banks’ share capital with state securities and federal bonds worth up to 1 trillion rubles (about $18 billion). The DIA’s property contribution would be invested in the banks’ subordinated loans (deposits and loans, including bonded loans) and preference shares.
Finance Minister Anton Siluanov has said that federal bonds could be used to increase bank capital by 13 percent and loans by 15 to 20 percent. The DIA’s revenue from these bonds would be transferred to the budget.