Deposit Insurance System (CER) is a method of protecting customers' bank deposits. This is a special program implemented by the state. In the event of an insurance risk event (for example, bankruptcy), the Deposit Insurance Agency (DIA) will reimburse depositors in the shortest possible time the entire amount they deposit before, and it also creates a list of banks included in the deposit insurance system.
The working principle of the Russian state CER
The functioning of this structure is carried out in accordance with Federal Law No. 77- of 12.23.03.
The main task of the entire state system is (in the event of the banking structure ceasing to function) to return to the depositor all his invested money at the expense of a certain source, which is financially completely independent of anyone and nothing. In addition to this, the depositor does not need to additionally conclude a special deposit insurance contract with the same banking structure.
The list of banks included in the deposit insurance system is made up of all those financial organizations that provide a similar service.
Agency Functions
The main objective of the Agency is to ensure the operation of the system of insurance of cash deposits of individuals. His rights apply to all parties and stages of relations between the bank, the Central Bank and depositors. The main functions of the institution:
• Monitoring the replenishment of the insurance fund, the collection of contributions of the parties.
• List of banks included in the deposit insurance system: its accounting, adjustment.
• Accounting for presentations of depositors, acceptance of applications for reimbursement of deposits.
• Reimbursement of the amount.
• Determining the conditions and procedure for calculating bank contributions.
• Investing surplus funds for the purpose of additional profit in accordance with existing legislative acts.
• The requirement from banks for information support on the functioning of the entire insurance structure.
• Appeal to the CBR on the application of appropriate measures to banks that violated its requirements.
CER Parties
Members of this system are clients of the banking structure of the Russian Federation:
• Banks that have received a license to conduct actions with individuals, that is, banks included in the deposit insurance system.
• Deposit Insurance Agency.
• TSB RF. It is the regulatory link in this system.
• Citizens of the Russian Federation with the status of an individual.
• Individual entrepreneurs who do not have the status of a legal entity, but who open an account for operations within the framework of functioning on a professional basis (avdokaty or notaries).
• Some agencies, which also legally, like banks, were previously recognized by organizations that provide insurance services.
Which banks are included in the system of compulsory deposit insurance in the Russian Federation? The answer is one: all banks participate exclusively. No single bank will be able to obtain an appropriate license if it is not a member of a CER. As a system of protection of civilian bank deposits in Russia since 2003, there is a system of cash deposit insurance (SSDV). The purpose of this system is to reimburse civil deposits from a specific financial source if there has been a termination of activity of any financial organization included in the list of banks participating in the mandatory deposit insurance system. A certain additional financial source is needed - a reserve insurance fund. He was formed at the insurance Agency. The basis for the replenishment of the fund (one of some) is provided by the banks of the Russian Federation who wish to work with a civilian.
And only after making a certain monetary contribution to the reserve fund, banks get the right to be licensed to carry out activities with individuals. The fund is replenished by banks once a quarter. The amount of such a contribution is established by the board of directors. It is the same for all banks, but sometimes it undergoes correction, which, in turn, can be based on the current economic situation, etc.
Deposits to be insured
Deposits made in any currency are subject to insurance. If an insured event occurs, the depositor is reimbursed the entire amount, but not exceeding 1.4 million rubles. The basis for insurance is the agreement that the parties conclude on opening an account in the name of a bank client.
List of banks participating in the mandatory deposit insurance system
Any banking structure having a relationship with individuals on the basis of a license is included in the register of the Agency. And in the reverse order - any bank from the said register has a license to carry out transactions with individuals. If he is not included in the list of banks included in the deposit insurance system, then he does not have the opportunity to conduct the relevant operations.
The bank enters the mentioned list only when it pays certain contributions to the insurance fund. And the insurance Agency, in turn, has the power to exclude any bank and thus adjust the list of banks included in the deposit insurance system. Only in two cases can a bank be struck off the list:
• Cancellation of license and termination of operation.
• The Central Bank imposes a moratorium on the bank in accordance with the requirements of creditors.
Currently, banks participating in the system of compulsory insurance of individuals make up a list of more than 1000 institutions.
First of all, these are all large and well-known institutions of modern Russian banking, which include:
• Sberbank;
• Gazprombank;
• "Alfa Bank";
• Russian Agricultural Bank;
• Raiffeisenbank, etc.
Additionally, little-known institutions support deposit insurance: Plus Bank, LOKO-Bank, KEDR, etc.
To find out the list of banks participating in the compulsory deposit insurance system (there are more than 800 in total), just contact the Agency. The official website of this organization provides all the necessary information. He will also provide information on banks that have lost the right to conduct operations on investing funds in individuals 'accounts or to engage in insurance of citizens' money.
Fund objectives and mechanism
This financial structure was created as the basis for the operation of the mechanism of insurance of civil cash deposits. The main and, probably, his only task is to return the entire deposit amount to civilians who are clients who suffered from the termination of the bank due to any life reasons. The fund in the full sense is formed from financial contributions made by banks participating in the system of compulsory deposit insurance, and from profit from investments of own funds.
The main ways of stock replenishment
1. The state replenishing the fund with a certain amount through the Central Bank of Russia. Currently, this amount is 7.9 billion rubles.
2. Banks participating in the system of compulsory insurance of individuals.
3. Income from investments of stock financial funds in securities of the largest organizations in deposits of the Bank of the Russian Federation. Investments are carried out exclusively in compliance with the requirements of the law of federal significance on non-profit form organizations.
The main stock characteristic is its independence from any government agencies and banks. This confirms that his funds cannot be used for other operations, except for the payment of deposit insurance. An important distinguishing feature of this structure is that its funds do not include penalties for obligations of financial institutions included in the list of banks included in the deposit insurance system and making contributions.
Features of foreign currency deposits
Deposits of Russians in banks in any foreign currency are necessarily insured. However, you need to know that when an insured event occurs, the amount is reimbursed in the ruble version. Accordingly, a recalculation is carried out in accordance with the Central Bank exchange rate for the currency that was invested at the time the insurance situation arose. The amount of insurance compensation is also one hundred percent of the total size of the deposit, but not exceeding 1.4 million rubles. Interest rates on foreign currency deposits are also taken into account when returning. The procedure for returning on foreign currency deposits is similar to ruble deposits.