Bypassing restrictions of some NPF invest in affiliated credit institutions half of the assets
The Central Bank is not like what non-state pension funds (NPF) violate the restrictions on investment of pension savings in associated banks and companies. According to “Izvestia”, some of the funds is permitted 15-25% (depending on maturity of instruments) of assets, investing in captive organizations from 30 to 60% or more. The Central Bank recognizes that there is no way to circumvent the restrictions, however the regulator’s hands are tied. Over the next year, the Central Bank intends to unleash them yourself.
After a history of financial-banking group Anatoly Motylev (head Bank “the Russian credit”), the regulator has increased the attention to these structures. Particularly painful, the Central Bank refers to the investment of pension savings in the framework of one group. In accordance with Regulation 451-P, was recalled to the Central Bank, “the share of investment in securities of a single legal entity or group of related legal entities long-term positions should not exceed 15%, and in the case of the inclusion of short instruments may be increased to 25%”.
However, at the International financial Congress (IFC), which was held at the end of last week in St. Petersburg, Director of financial stability Department Sergei Moiseyev said that the regulator does not suit the scale of investment of NPF in the captive group. As he put it, too much money now invested in banks or by appointment. And given the pension reserves are invested more. Turns out the amount of concentration that leads to an increased risk.
The representative of the Central Bank did not mention specific indicators. However, the source of “Izvestia”, close to the regulator said that several funds investing in head banks is 30%. And two SPC and is helped affiliated credit institutions amounts greater than 40 and 60% of its assets respectively.
Official representatives of the Central Bank recognized that the limitations inherent in the situation, you can try to work around by investing in not formally affiliated entities. A source close to the regulator explained that the NPF is not only trying to do it, but actively doing through entities which are formally banks or companies are not related.
As one of the financiers who wished to preserve anonymity, the scheme is simple: you create a company, it issues securities, which are invested in the Fund. If the final link in the chain is the Bank, then the company puts received from NPF funds on Deposit in the credit institution. In fact, the controller sees that the companies are connected by financial flows, activities, etc. But yet can not do anything.
— To deal with the phenomenon of the Bank of Russia the powers necessary for determining the group of related entities, explained in the CBA.
According to the Central Bank, currently, there are 314 informal financial conglomerates, which do not fall under the regulation; more than 110 banking groups with the participation of 160 credit institutions, which bring together 230 legal entities. Also, now 28 Bank holding companies, which include 36 credit institutions.
According to the regulator, the lack of control over these structures creates the conditions in which these enterprises have the capability (and often use it to structure the business so that they not subject to the requirements, e.g., compliance with mandatory regulations. In particular, the N6 ratio (the ratio of maximum risk per one borrower and group of related borrowers). What we are sure of the Central Bank, creates a threat to creditors and citizens.
Managing Director of corporate ratings Agency RAEX (Expert RA” Pavel Mitrofanov believes that the investments in banks with high enough credit ratings to the level of risk still cannot be compared with investments in dubious assets, land and other assets mentioned in the story of Anatoly crank.
— However, if the Central Bank considers that the concentration risk on a single asset is too big, you can simply change the requirements, because in any case, the funds will use all officially permitted opportunities for captive investment, he believes.
In this regard, as was announced at the IFC, the Central Bank completely changes the approach and next year plans to move to the regulation of the activities of banking groups, banking holdings and other associations of legal entities with the participation of financial institutions.
