International rating Agency Fitch intends to lower the ratings of Russian banks after the introduction of the mechanism of bail-in — bailout of the banks using the funds of creditors. It is reported Rambler News Service. This measure reduces the likelihood of providing support to troubled banks, but the Agency considers it to be correct.
“We believe that the move towards bail-in demonstrates the desire of the authorities to stop using public money to support banks with weak governance. It should also standardize procedures for resolving situations with problem banks,” say analysts at Fitch, in his review of the Russian banking sector.
Experts indicate that the ratings of the Russian private banks range from ‘BB+’ to ‘B–’ and due to their own creditworthiness. The ratings of major state-owned banks — Rosselkhozbank and Gazprombank, although take into account the factor of state support, but their reduction due to the introduction of the mechanism of bail-in is also questionable.
“Legislation to bail-in will not necessarily lead to the downgrade of these issuers. We believe that perhaps taking into account factors of ownership, the role of banks in implementation of policies (the agricultural Bank) and corporate shareholder (Gazprombank) support can still be provided in case of need,” say analysts at Fitch.
The Deputy Minister of Finance of Russia Alexey Moiseev reported on 3 February on the TV channel “Russia 24” that the law allowing for the use of the contributions of the Russian millionaires on the mechanism of bail-in, may be adopted no earlier than mid-2017. Now, he said, is driven around the concept that the Finance Ministry sent it to agencies. Her discussion will take six months.
The mechanism of bail-in allows for the rehabilitation of problem banks to use the funds of their depositors, businesses and individuals. we are talking about deposits that exceed 100 million rubles.
