Bank "People's Credit": problems. Is the bank Halyk loan closed?

Bank "Narodny Credit", whose problems reached its apogee in 2014, began its existence in 1993. Its first name "Shark" already in 2000 was replaced by "People's Credit". Back in 2008, the financial institution stepped up the procedure for changing the organizational and legal form. The limited liability company was upgraded to a joint-stock company in 2009. Already in December 2010, the bank "Narodniy Credit", which had previously been extremely positive, acquired a 25% stake in Bank of Khakassia. A little later the number of shares was increased to 76%. By 2011, the license of the financial institute of Khakassia was completely annulled due to the merger. Bank "People's Credit", whose problems began because of low liquidity, controlled the Antonov family.

Brilliant past

The bank worked under the license of the Central Bank and was a partner of Moscow. The financial institution was a member of the Association of Russian Banks and a participant in the Deposit Insurance Structure. The officially registered authorized capital of the enterprise was 1.8 billion rubles. The size of own capital was equated to 4,2 billion dollars. The Institute had the title of associate member of the international payment systems VISA Inc. And Mastercard WW. Previously, the rating agency always confirmed the solvency of the institution and referred it to category A in accordance with the national scale.

Just two years before reports began to appear that the bank "Narodny Kredit" is being closed, the organization was a laureate of the "Financial Olympus" award. The structure of the regional network included 9 main branches and about 35 additional offices. There were times in the history of the institute when he did not even fight for a tender from the state. A tough lending policy in the best of times made it possible to achieve colossal liquidity ratios.

What happened to the bank recently

In the last year, the financial institution worked under the instruction of the Central Bank, which limited the attraction of deposits of individuals. This order was received back in July 2013. Also, in addition to restrictions, the CBR strongly recommended that all reserves be activated in order to fulfill obligations to depositors. Attention was drawn to the fact that the financial institution itself had never pursued an aggressive policy of attracting deposits. Such measures were taken as a result of the low liquidity of the institution.

The first signals to trouble

The first failure in the work was due to the fact that the bank "People's Credit" deposits began to issue outside the rules. When the depositors began to come for their deposits, they were informed about the daily limit of the institute in the amount of 25 thousand rubles. People were not able to get their hands on one day. I had to walk for weeks. Nevertheless, in comparison with other financial institutions that refused to make payments at all, on the eve of bankruptcy, the bank "Narodniy Credit", whose reviews have always had a positive connotation, almost fully fulfilled its obligations. Despite the crisis situation, the employees of the call center stably answered all questions and provided each client with exhaustive information. In order to avoid material collapse, the bank's employees repeatedly notified customers that some payments were suspended, and most of the accounts are not serviced.

Attempts to improve the situation

In an attempt to remedy the situation, OJSC "Narodniy Credit Bank" is trying to increase liquidity by lowering interest rates on loans. The program "folk" has become incredibly accessible. In the presence of a pledge or guarantor, the interest rate on loans of up to one year was only 16% per annum. With a loan duration of one to three years, the interest rate would be 17% per annum. With a loan duration of more than three years, the rate was set at 18%. Loans were also available to customers who had neither collateral nor guarantor. However, in this case, the interest rate rose to 18%. With a partnership period of 1 to 3 years, the interest rate could be 19% per annum. If the client decided to borrow loans for a period of five years, the interest on the loan could be 20%. The proposal worked in all branches, including in a city like Abakan. Bank "Halyk loan" did not save even such a desperate decision: the situation with liquidity has not changed.

What was the basis for the decision to liquidate the license?

The decision to liquidate the license was made based on the reports of the new administration. The information said that the bank "People's Credit" is experiencing problems is not small in connection with a decrease in liquidity to 50%, and the instant liquidity ratio was about 15%. The financial institution did not apply for state aid due to the fact that at that time negotiations were held with investors intending to make a contribution of $ 100 million.

Beginning of the End

After receipt of reports to the NBU from the clients of OJSC "Bank" Halyk loan "about the impossibility to fulfill their obligations, a temporary administration was appointed to the financial institution. Beginning on October 1, 2014, the interim administration conducted a financial analysis of the situation. In fact, the total loss of personal capital was recorded by the administration. It was decided that it is impossible to restore the solvency of the structure, and any infusion from the state will not make sense. The results of the assessment of the situation by the temporary administration became a powerful reason for the termination of the activities of such a financial institution as the bank "Narodniy credit". The license is revoked only if the institution is no longer able even with the material support of the government to fulfill all its obligations to depositors and creditors within a year. The circumstances were exactly in accordance with the legislation.

Work rolled on an inclined

Immediately after the brilliant liquidity indicators, the bank "Narodniy Kredit" began to experience the problems far from being small, despite the conservatism of its activities, which was reflected in the maintenance of projects in the sphere of housing and communal services. Loans to individuals amounted to only 3% of the loan portfolio, which dominates in assets with a share of 70%. The funds of individuals accounted for only 23% of liabilities. The remaining funds on corporate clients' accounts were only 22% of the capital. The shares and promissory notes of domestic banks accounted for only 19% of net assets. On the interbank market, the institution acted as a donor in most situations. With a high degree of concentration of assets with liabilities, the company's activity had a low profitability.

Decrease in statistical indicators

According to the statistics of the National Rating Agency, the bank "Narodny Credit", withdrawing the license because of low liquidity, in 2010 received a net profit of 20.9 million rubles. In the previous year, this figure was significantly higher and amounted to 107.2 million rubles. This situation lowered the bank to 149th position in the rating and attracted the attention of the Deposit Insurance Agency. Decrease in indicators was observed in all branches and small branches, and the city of Abakan was not an exception. Bank "People's Credit" began to take positions, although outwardly nothing foreshadowed woes.

Rational completion of history

Bank "People's Credit" closes for good reason. In addition to low liquidity, the temporary administration managed to find out that the price of the financial institution's assets is not more than 14.121 million rubles. As for liabilities to depositors and creditors, they make up about 16,854.8 million rubles. The reason for this discrepancy is hidden in the issuance of pre-default loans, the amount of which amounted to 10.2 billion rubles. Moreover, the fact of purchasing illiquid bills of 1.8 billion rubles from companies whose addresses indicated in the documents do not correspond to reality was recorded. There was an alienation of the property of the financial institution in the amount of 0.2 billion rubles. The regulator received information that the management had carried out criminally punishable operations. The result of such manipulations is more than obvious, and a positive development of events should not be expected. Despite the fact that most of the depositors returned their savings in part, a large number remained and those whose losses will be compensated by the insurance agency in the regime established by the regulations.