Rosinterbank Folds and Buries Data on 3000 Clients

Russian business daily Vedomosti reports that approximately 3,000 Rosinterbank’s clients with 5 billion rubles (USD 80.4 million) in deposits might not be able to get their money from the Russian Deposit Insurance Agency after the breakdown of their bank. These clients opened or topped their accounts after July 18, the date on which the Agency last collected the data on Rosinterbank’s deposits. Information on Rosinterbank’s deposits after that date is lost, as the bank pulled the plug on the system that monitored it before it folded.┬áTherefore, the Russian Deposit Insurance Agency has information on 84,400 clients with 52.1 billion rubles (USD 837.75 million) in deposits, while the actual volume of deposits held in the bank at the time of its bankruptcy is probably closer to 57 billion rubles (USD 916.5 million). Former head of the bank Marina Krasnova tried to be helpful and delivered the bank’s internal data on clients from mid September, but the Agency has no intention to rely on the list coming from the bank that had previously deliberately disconnected the centralized data collection system. The Agency will review any documents presented by the bank’s clients who placed their deposits after July 18, but there are no guarantees that their claims will be met.
Rosinterbank was one of the fastest growing banks in the country, jumping from 938th to 61st position on the list of banks ranked by assets within six years, from 2010 to 2016. Its aggressive lending policies eventually prompted the Russian Central Bank to introduce mandatory supervision and place limits on attracting private deposits. However, the bank seems to have continued to attract private deposits and engaged in shadow accounting. This practice is nothing exceptional in Russia – for example, one of the smaller banks, Arksbank, had 4 billion rubles of deposits on its official balance sheet and ten times as much on its “unofficial” balance.