OREANDA-NEWS. December 02, 2010.  The Board of Directors of the State Corporation “Deposit Insurance Agency” (DIA) held its regular meeting chaired by Sergey Ignatiev, Chairman of the Bank of Russia.

The Board members approved the DIA Strategic Plan for the period through 2015. The document sets forth the DIA strategic and operational goals and objectives, as well as means and strategies that will be employed in pursuit of these goals and objectives. The DIA Strategic Plan incorporates a number of strategies related to basic areas of the Agency’s operation: the strategies for developing functions of deposit insurance, bank rehabilitation, bank liquidation, communication, as well as financial, corporate governance and HR management strategies. The Strategic Plan is aimed at balanced development and modernization of all business processes of the Agency, so that by the end of the planned period maximum compliance could be attained with the “Core Principles for Effective Deposit Insurance Systems” issued by the Basel Committee on Banking Supervision and the International Association of Deposit Insurers.

Implementation of the Strategic Plan will be pursued through development and fulfillment of a five-year plan of basic measures as well as annual activities plans that will be approved by the DIA Management Board. The process of its implementation will be reviewed on the basis of a set of key performance indicators. The results of the review will be annually reported to the DIA Board of Directors and reflected in the DIA annual reports.

The Board of Directors approved corporate key performance indicators for DIA operations, as well as DIA managers’ personal performance indicators for 2011. They are based on assessment criteria for efficient functioning of the deposit insurance system, insolvency procedures’ management, efficiency of realized measures aimed at bank bankruptcy prevention, and income derived from investing temporary idle resources.

The Board meeting approved Procedure for investing temporary idle Mandatory Deposit Insurance Fund (DIF) resources in 2011. With respect to all key items the approved document coincides with the similar document effective during the current year, and it corresponds to the existing market situation and estimates for the forthcoming year. The only difference lies in the decrease in maximum limit of DIF resources investments in the Russian issuers’ stock - from 15% to 10%, which is of technical character.

The Board took into consideration information about results of investing DIF resources in the third quarter of 2010 and resources that are temporary not used for implementing DIA plans of its participation in bank bankruptcy prevention. The income derived from DIF resources’ investment during 9 months of the current year amounted to RUR 6.8 billion; while the income from investing temporary idle resources designated for bank bankruptcy prevention reached RUR 1.8 billion. Taking into account securities revaluation the income from invested funds during 9 months of the current year amounted to 13.2%. As of October 1, 2010 the DIA net profit amounted to RUR 8.5 billion.

The Board members took into consideration information about the DIA activities aimed at bank bankruptcy prevention and use of the Russian Federation property contribution funds for implementing the above measures in September-October 2010. During the reported period the DIA continued its participation in financial rehabilitation of 13 banks. In September-October 2010 financial rehabilitation measures for ZAO “NOMOS-BANK-Siberia” were completed; reorganization of “Bank Petrovsky” by its merging with “Bank OTKRYITIE” was accomplished; as well as a number of measures related to the planned merger of CB “GUBERNSKY” with “Bank OTKRYTIE” were carried out. Totally for bank restructuring purposes the DIA allocated RUR 336.3 billion, of which RUR 190.3 billion were loans received from the Bank of Russia.

The Board meeting approved the DIA estimate of expenses for 2011. Taking into account the Russian Federation Government requirement to reduce state corporations’ expenditure, the total DIA expenses for 2011 will be reduced, specifically at the expense of reducing administration spending, and they are designated at the level of 97.5% of the last year estimate.

The Board members took into consideration the Internal Audit Service report about accomplishment of activities plan for the second half of 2010. The Board approved the Service plan of activities for the first half of 2011, and reviewed a number of other issues relating to the Agency’s operations.