ArmInfo. once said Lucius Annaeus Seneca, the famous Roman Stoic philosopher, poet and statesman To ensure the safety of our hard-earned money, the modern world has come up with a system of guaranteeing bank deposits.
The Russian mandatory deposit insurance system (DIS) was created in late 2003, with the State Corporation (DIA) serving as the system's operator since January 2004. Natalia Fedorova, Deputy General Director of the state corporation , shared in an interview with ArmInfo how the system functions and to what extent bank deposits in the Russian Federation are currently insured by the state.
- This year marks the 20th anniversary of the Deposit Insurance System. As the DIA enters its third decade , what indicators will define its future?
- Today, 592 banks are part of the deposit insurance system, 296 of which are in liquidation: Any bank that attracts funds from individuals is a participant and pays contributions to the compulsory insurance fund. From this fund, the DIA transfers insurance compensation to depositors when a bank's license is revoked. Currently, the insurance compensation limit per depositor in one bank is 1.4 million rubles (5.5 million AMD). For certain types of accounts (escrow accounts opened for the purchase of real estate or participation in shared construction) and funds received under special life circumstances, there is an increased limit of 10 million RUB (39.8 million AMD). We started with 100 thousand RUB, and the range of protected deposits was much narrower. Previously, these were only accounts of individuals, now we insure funds of small and medium businesses, individual entrepreneurs and non-profit organizations. In fact, only funds of large companies are left uninsured.
- When was the amount of insurance compensation last revised?
- Over the 20 years of the deposit insurance system's operation, the maximum amount of compensation for regular deposits has changed several times: in 2004 it was 100 thousand rubles, in 2006 it was increased to 190 thousand rubles, in 2007 - to 400 thousand rubles, in 2008 - to 700 thousand rubles, from December 19, 2014 - to 1.4 million rubles. In 2015, an increased limit of insurance compensation was introduced - up to 10 million rubles for escrow accounts opened by individuals for settlements under real estate purchase and sale transactions. In 2018, it was extended to escrow accounts opened for settlements under contracts for participation in shared construction of an apartment building, and in 2022, to escrow accounts of participants in shared construction of individual residential buildings. Starting from March 1, 2025, escrow accounts opened for settlements under construction contracts for individual houses will be insured for 10 million rubles. In 2020, the amount of insurance compensation for an individual depositor for an account where funds were received under special life circumstances increased to 10 million rubles. For example, if a person received money from the sale of an apartment, as an inheritance, or as a grant from the state. The current insurance compensation limit covers the funds of almost 98% of depositors. That is, the savings of only 2% of depositors remain outside the limit, but these are fairly wealthy people with a good level of financial literacy. They are able to protect their savings on their own.
- Given the increasing geopolitical risks, the question arises: will Russia raise the minimum level of guarantee for bank deposits?
- Currently there is a discussion about doubling the limit of insurance compensation to 2.8 million rubles for deposits with a term of more than 3 years, which are backed by irrevocable savings certificates. The corresponding bill has been published for public discussion on the federal portal of draft regulatory legal acts. It is expected that the limit will be raised by the end of 2025. The economy is in need of long-term funds at the moment. Increasing the level of protection for long-term deposits will encourage depositors to invest funds for an extended period.
- In the modern world, currency risks are growing. With this in mind, it is possible to expect a revision of the ratio of guaranteed deposits in national and foreign currencies, perhaps to attract deposits in foreign currency? It would also be interesting to know the share of foreign currency deposits in Russian banks, such as at the beginning of 2020 and now?
- We have funds insured in any currency up to a certain amount. If a bank's license is revoked, and you have a foreign currency deposit there, you will receive insurance compensation in rubles at the exchange rate of the Bank of Russia on the day of the insured event. At the beginning of 2020, the share of individual deposits in foreign currency was 19.7%. Now that figure has decreased significantly: as of November 1, 2024, the share of individual deposits in foreign currency is 7.5%. This figure is not significant for the Russian economy, so there is no reason to set a separate limit.
- How many insurance claims has your Agency had to handle over the past two decades?
- There have been a total of 554 cases. The DIA paid out more than 2 trillion rubles in compensation, 4.4 million depositors received the funds. The peak in the number of insurance claims occurred between 2013- 2018. During that time, more than 350 banks lost their licenses, leading to a period of reconfiguration in understanding how banks operate. The maximum number of insurance claims was recorded in 2016 - 88. In the past five years, the most claims were in 2021 (22), and in 2023 there were none. However, this year has already seen five claims, with the most recent one involving the Moscow Bank of Corporate Finance (BCF), over 90% of the insurance compensation has already been paid out for this claim.
- If you didn't have time and missed the deadline to receive insurance:
- The depositor can still apply for an insurance payment before the end of the bank's liquidation period, which typically lasts at least a year, making it hard to miss the deadline. Moreover, the DIA notifies depositors about the insurance event several times through SMS and mail. However, if the depositor somehow misses the deadline, they can request an extension, which the DIA will consider. If the reason for missing the deadline was valid, such as being in military service or experiencing serious illness, the depositor will have the chance to receive insurance after the completion of the bank's liquidation. The legislation outlines the full list of reasons.
- Recently, a significant number of citizens and residents of the Russian Federation have relocated to Armenia and other third countries. How is the issue of reimbursement of their bank deposits resolved in the event of an insured event?
- The main point is that the depositor has a deposit in a bank registered in Russia. In this case, we protect the deposits of not only Russian citizens, but also foreigners and stateless persons. Therefore, the savings of depositors in Russian banks remain insured regardless of where these depositors actually live. Since March 2024, we have offered the option to apply for insurance compensation online. Now, the depositors can submit an application on the DIA website or on the portal, where various services can be accessed electronically - from submitting meter readings to applying for a passport. A person simply fills out an application, enters their details, and within 10 minutes the money is transferred to the specified account. To prevent fraud, the depositor only needs to provide a personal account. An interesting observation: in June there was an insurance case (Avtogradbank, Naberezhnye Chelny, Tatarstan) after the bank's license was revoked, 70% of depositors went to the bank's office to collect their savings. However, three weeks after the revocation, only 50% of depositors applied to receive funds online. I believed in online reimbursement because it is convenient for everyone and provides a quick solution. To further simplify the process, for Mir cardholders we have eliminated the need to fill in bank and account details for transferring money - it is sufficient to provide the card number printed on the front. However, statistics show that many still prefer to visit bank in person to get their money.
- The expert group on harmonization of legislation in the field of insurance guaranteeing bank deposits, liquidation, financial recovery, and bankruptcy of credit institutions within the territory of the Eurasian Economic Union has been active for several years. What issues are currently on the agenda of the expert group? What proposals has the Russian side presented?
- The deposit insurance systems of all EAEU countries are similar, but have their own unique characteristics. However, the basic concept remains the same - to protect depositors' savings and enhance their confidence in the country's financial system. As of now, the expert group has approved 31 conclusions, with five topics approved in 2024. For instance, we proposed a guarantee where if you have a deposit of million in two different banks, in event of insured event, you would be paid a million in each bank. However, the issue arises when banks merge or join? In Russia, there is a guarantee that after a merger, separate accounting of deposits will be maintained for another three months, and in the event of an insured event, the depositor will reveive compensation from both banks. We recommended extending this practice to other countries within the Union. Our recommendations will be submitted to financial market regulators for consideration when forming an interstate agreement.
