Predict the collapse of the banking system as a whole should not

Comment on news that the Bank intends to facilitate the process of writing off of bad debts with balances of credit institutions. Said the deputy director of the department of banking regulation and supervision of the Central Bank of Russia Vladimir Chistyuhin. Possibility of writing off bad debts from bank balance sheets, without going through the basic procedures does allow banks to reduce costs, as well as reduce costs associated with tracking these debts. To date, the decision on writing off the uncollectible balance of the credit institution to collect bad debts, as a rule, should be confirmed by relevant documents (identification, resolution of court, notary bodies), indicating that at the time of this decision pay off debt from the debtor can not . Of such documents requires a lot both temporal and financial costs. Planned innovation to optimize the process of writing off bad debts from bank balance sheets and thereby reduce costs. In addition, it will "cleanse" the balance sheets of banks from the bad debt that would lead to "improvement" of their structure. Will this measure does significantly reduce the costs of banks? Under the prevailing today (crisis) conditions, most banks are faced with a sharp rise in bad debts for uncollectible penalties, and as a consequence, the sharp increase in costs associated with the passage of key procedures (activities organized by the Bank for the recovery of bad debts in court). Often, the costs of the procedure to write off "bad" debts exceed the income which the bank receives from the write-off. Given the fact that the level of debt in the banks has increased significantly over the past 9 months, simplification of procedures for writing off bad debts, of course, will allow banks to reduce costs in this area. Bank of Russia plans to lower the risk ratio from 100% to 70% for residential mortgage loans in the calculation of mandatory standards of banks. In your opinion, whether this action to make mortgages more affordable product for the Russian banks in a crisis? The sum of mortgage loans make up a major stake in the total loan portfolio of banks offering retail - mortgage lending, due to long term loans granted. Therefore, the Bank of Russia planned reduction in reserves for possible losses on mortgage loans (such as the newly issued, and the already issued) from 100% to 70%, will allow banks to "optimize" the costs of establishing reserves, which in turn will entail increasing the size of banks' capital. Lowering the risk weights on mortgages (housing) loans allow banks to maintain and continue to carry out mortgage loans to individuals. How do you think, what is now the average level of arrears in the banking system? How this percentage is critical? What do you think, whether overdue lead to the collapse of the banking system at the end of this year? Analyzing data from the reporting of most large banks, we can say that the average level of arrears on the banking system now stands at 10-11%, which is confirmed by data from Rosstat published April 20, 2009. This figure, compared with last year, has increased significantly. In this case, there is a possibility of growth of overdue debts in banks to the fall of 2009. For many banks, it could become a "serious" problem: the banks have not only failed to get back on credit issued by money, but will have to reserve a "bad" loans increasing amounts of money. However, predicting the collapse of the banking system as a whole, in my opinion, not worth it. Since most banks today have already taken steps aimed at improvement lending programs and products, methods for assessing the financial status of potential borrowers. These measures allow the banks more weighed to assess the possible risks when providing credit to borrowers, and as a consequence, to prevent critical volume growth of arrears in the future. In turn, the CBR and the government in a situation likely to take measures to support the banking system of Russia and to facilitate banks to access the "cheap" money. How has your local bank is in arrears for this year? Working with the problem of overdue debt in the KB "EW" (JSC) in the current year was revised and supplemented by so-called "indicators" for the rapid identification of problem loans. Effective management of problem loans depends on how quickly encountered a problem and taken steps to address it, so the CB REB (ZAO) is of great importance to the process of working with problemn6oy debt early. Choice of direction in dealing with problem loans is determined by each borrower individually. The standard procedure for dealing with problem credits include several stages: identification of problem loans, problem analysis, selection of areas of work, execution plan. In addition, when non-compliance with obligations of the borrower, the bank may decide to apply to the court, law enforcement and other agencies to protect their interests. By promptly carrying out the above actions to date in BC "EW" (JSC), the problem is congestion at an acceptable level.