I saw this piece this morning in VZGLIAD. Reporter Anton Nikitin writes about a defaulting bank called TatFondBank. Russian analysts are worried that repercussions of Tat’s bankruptcy could spread to other banks, if measures are not taken to avert problems.
TatFondBank is owned by the Russian government, and is the second largest financial institution in the Republic of Tatarstan, a subject of the Russian Federation located in the Volga region. Tatarstan has roughly 3 and a half million people and is the titular homeland of the Tatar ethnic group. Its capital is the city of Kazan, which was conquered by Tsar Ivan the Terrible in 1552. Tatars are said to be good at handling money, but the mismanagement of TatFondBank is apparently the exception which proves the rule.
Back in December, word spread that Tat had declared bankruptcy and got its license revoked. Radio Free Europe mentioned the story in this piece. TatFondBank’s problems then spread like dominos to other banks such as AltynBAnk and Intekhbank. The Tatarstan regional government started working with the Federal government to stabilize the banks before things would get completely out of hand.
In an interview with the VZGLIAD reporter, the head of the Association of Russian Banks, Gagerin Ashotovich Tosunyan, surmised that the Bank of Russia had to revoke licenses from Ankor Bank and IntekhBank, in order to prevent a domino effect spreading from TatFondBank.
Another expert, Alexander Danilov from Fitch Ratings, noted that Tat’s “passives” outnumber its “actives” to such a degree that it doesn’t even make any economic sense to “sanify” this bank. I don’t even know what all of this means, but it sounds slightly pornographic. “There was just such a big hole there,” Danilov complained, that it doesn’t make any sense to “sanify”. “Sanify” (Russian санировать meaning “to make healthy”, “to make whole”.)
In the ensuing panic, one of the big oil companies, TatNeft, went to court to try to get its money back. Apparently they had a lot of money in TatFondBank accounts. When the bank went “rupt”, then anybody who had money in there, started to feel that hollow sensation of “Bye bye, money!” TatNeft is now standing in line waiting to see how much cash it can recoup after the bankruptcy proceedings. As of 15 December, 2016 TatNeft had around 5.4 billion rubles in TatFondBank. Fortunately, this is only a fraction of their overall assets, in accordance with international banking regulations, which stipulate that it is dumb to put all one’s eggs into one basket.
Meanwhile, a Tatar banker named Rustam Timerbaev, is paying the price by serving time in jail. Rustam used to work for TatFondBank, in the department of Client Services.
Which proves that Russian Civilization is superior to the West. Since not one Western banker ever served any time, that I know of, for any of the big financial crises of the past decade!