The fundamentals of regulation of the insurance system in Russian banks should be regulated by law. This article will talk about 177- "On deposit insurance", which sets out the provisions on the financial, organizational and legal foundations of organizations involved in compulsory insurance of individuals.
General characteristics of federal law
The 177-FZ aims to protect the interests and rights of Russian depositors, strengthen civic trust in the national banking system and provide high-quality incentives for people's savings in this system. If we talk about what relations the presented regulatory act regulates, then it is worth highlighting the formation and use of the cash deposit insurance system, the payment of deposit reimbursements, as well as the relations that arise in connection with the implementation of state control and supervision functions in the system under consideration.
What is a contribution at all? According to 177-, these are financial assets denominated in national or foreign currency and placed in a Russian bank with the consent of an individual under a special agreement. Compensation for the deposit is the amount that is payable to the depositor.
On the functioning of the deposit insurance system
Article 3 of Law No. 177- sets forth the basic principles in accordance with which the entire banking insurance system should work . Here are some highlights:
- transparency of the deposit insurance system;
- identification, reduction or elimination of risks of occurrence of adverse consequences for investors;
- obligatory participation of banking enterprises in the insurance structure;
- formation of an insurance fund on a funded basis through timely donations from system participants.
Who exactly is a member of the insurance system? It is worth mentioning the depositors themselves, as well as various agencies and banks. Article 5 provides examples of deposits that cannot be insured. Here are some highlights:
- funds deposited on bank accounts;
- finances that were transferred to bearer bank deposits;
- electronic finance;
- money placed on nominal accounts (with some exceptions);
- finances that were placed by individual entrepreneurs in deposits of a subordinated type.
Thus, all banking activities must strictly comply with Law 177-FZ.
About the obligations of banks
Article 6 of Law No. 177-FZ sets forth the basic obligations of banking enterprises in this area. Here it is worth paying attention:
- to provide depositors with information on participation in insurance;
- to place information about the insurance system in places accessible to investors;
- to pay insurance premiums to the compulsory insurance fund;
- to maintain a register of bank liabilities to depositors, etc.
Any bank must be registered in a special register that secures the participants of the insurance system. Only after registration in this register will the bank have the opportunity to become a full-fledged representative of the deposit insurance structure.
About investor authority
Article 7 of the normative act under consideration provides the basic rights of depositors. Here's what you should pay special attention to:
- the ability to receive compensation for deposits in the manner prescribed by law;
- receiving from the banking company all the necessary information about the bank’s participation in the entire deposit insurance system;
- communication to agent companies about the delay in the bank's fulfillment of its deposit obligations.
If the depositor was able to acquire compensation for deposits that were placed with the bank, he is able to maintain claims on this bank for an amount that is defined as the difference between the size of claims and the amount of compensation paid. Satisfaction of the presented right is possible only in strict accordance with the Russian Civil Code.
And what is an insured event? According to the law, this is a revocation of a license from a banking enterprise, or the introduction of a moratorium by the Russian Central Bank on the satisfaction of requests from bank creditors.
About reimbursement of deposits
It is worthwhile to tell in more detail about the procedure for reimbursing deposits to persons with depositor status. Articles 11-12 of Law No. 177-FZ enshrined all the basic provisions regarding the procedure presented.
How can the amount of compensation for deposits be established? The law states the establishment of the required amount in accordance with the amounts of obligations in respect of which an insured event has occurred. It should be noted that the process of calculating the amount of obligations involves the calculation of only those deposits that are insured in accordance with the law in question.
Compensation is paid in the amount of not more than 1.4 million rubles and from 100 percent of the value of deposits. The same situation is unfolding with several deposits in one bank.
How exactly is the amount of compensation for deposits calculated? The law provides for the consideration of the size of cash balances on a deposit (aggregate deposits) on the final day of the occurrence of the so-called insured event. If the bank also acted as a creditor in relation to the depositor, then the amount of compensation should be based on the difference between the totality of the bank's counterclaims and the amount of the bank's obligations to the depositor.
About Insurance Agency
An important role in the deposit insurance system has been played by the Agency, which has already been mentioned more than once. What is this authority, and what role does it play in the structure under consideration? To find the answer to this question, you will have to turn to article 14 No. 177- "On insurance of deposits of individuals".
According to the law, the Agency is a state-owned corporation established on the territory of the Russian Federation and having its own charter, coat of arms, purpose of activity and authority. The agency has a number of accounts with the Bank of Russia. The authority of the organization represented includes opening bank accounts and entering into contracts within its authority.
It is easy to guess that the main purpose of the Agency’s functioning is to provide a
deposit insurance system
. If we talk about the specific functions of the organization, then it is worth mentioning:
- organization of a banking registry;
- collection of insurance premiums;
- the implementation of a number of measures to take into account the requirements of depositors to a banking enterprise, the payment of compensation for deposits;
- control over the receipt of insurance contributions to the appropriate fund, etc.
It is also worth noting that the Agency can act as a liquidator of bankrupt credit organizations.
System organization
Article 27 of the Federal Law No. 177- "On Deposit Insurance" discloses in more detail the principle of operation of the entire deposit insurance system. The law describes the Agency’s interaction with the Russian Bank (BR). Thus, the Agency’s responsibilities include timely informing the BR of the following phenomena:
- replacement of a license of the BR;
- the formation of a moratorium on the satisfaction of certain requirements of bank creditors;
- revocation of a BR license;
- issue to any bank of permission from BR;
- the appointment of a temporary administration to manage a credit institution, etc.
The Bank of Russia is also required to inform the Agency of similar cases. It is also worth noting that in subsequent articles it is said about the registration of the bank, about the procedure for the occurrence of an insured event, as well as about the control and supervision functions of the Agency when checking banking enterprises.
About changes in 177- in 2017
The latest version of the normative act in question entered into force on July 31, 2017. Minor changes were made to the law. In particular, in paragraph 1 of Article 8 (about an insured event), it is indicated that the participation plan for settlement of the bank’s obligations is either implemented by the Agency or the Bank of Russia. Prior to the introduction of amendments to the article, the reference was only to the Agency.
Article 18 talks about the Board of Directors of the Agency. According to the new edition, the headquarters of such a Council was replenished with two more representatives from the Bank of Russia (previously there were five).