Major banks may lose their deposits

Low profitability of business could result in exclusion of several large banks from the deposit insurance system. Thus, the Center for Economic Studies of the Moscow Academy of Finance and Industry (CEI MIFP) conducted a study to find out how big banks need an extension of the moratorium on the exclusion of banks from the deposit insurance system, according to Kommersant. It turned out that indicators such as capital, assets or liquidity of credit institutions are no problems, but the yield is poor. CER MIFP identified 10 banks, which account for 70% of all losses of the Russian banking system, which equates to 20 billion rubles. Leaders in losses were "MDM-Bank (20.26% of total losses)," PSB "(18.87%)" Absolut Bank "(5,24%)," World Bank "(5,19%), "Swedbank" (4.36%), B & N (2,76%), and AMT-Bank (2.49%). According to the CER MIFP, these banks can withdraw from the deposit insurance system, if not show the year-end profits. According to sources, the Central Bank probably will not go to the extension of the moratorium, so the banks will have to act independently. True, the banks also have a good chance to show good financial results. For example, as reported analysts MIFP, MDM Bank and World Bank "has entered the operating profit, and despite the losses they received earlier this year, the last two quarters will be profitable for them." Recall that a moratorium on the exclusion of banks from the deposit insurance system (DIS) for breach of quantitative indicators of financial stability was introduced in early 2009 at the height of the crisis. Initially it was envisaged that its action will end Jan. 1, 2011, and since no good reasons for its renewal is not, then the central bank will not meet the banks, experts say. Currently, CERs exists in various forms in 104 countries around the world. More than half of all insurers included in the "International Association of Deposit Insurers. As of November 1, 2009, in Russia the number of banks - participants then was 931, of which 867 organizations were operating banks.