What is sanation: the essence and causes of application

Often in modern literature, you can find different concepts, the essence of which we do not fully know. This is the phrase "bank sanation". Let's try in this article to understand everything in detail.

So, what is sanation, what impact can it have on the activities of financial institutions?

The essence of the term

Sanitation is a procedure of a kind of rehabilitation of financial institutions in financial terms. This procedure can be carried out in credit institutions, but only when there is an opportunity to avoid bankruptcy, and also to save the economy of the state or a separate region of the largest and most significant banks. The answer to the question about what sanation is, is the following: it is the search for a suitable investor or general financial recovery at the expense of one's own resources and resources.

To whom is it profitable?

For depositors, sanation is beneficial. With its help, you can save money in full, and not only receive insurance compensation, provided by the current legislation and amounting to 700 thousand rubles. At the same time, what is sanation is well understood by legal entities, if there is one investor-buyer for the whole of such a troubled bank. Thanks to these measures, business entities continue to be fully serviced in the same banking institution.

However, the meaning of the word "sanation" loses its meaning if the "hole" of the bank balance is equal to its balance. Such a financial institution is not subject to recovery. The law provides for the right to refuse financial rehabilitation of banks. Today, sanation is being carried out in fifteen banks of the Russian Federation.

Thus, we can formulate what the word "sanation" means. This is the implementation of activities that involve not only the restoration of the bank's liquidity, but also the transformation of the client base with the restart of lending, the revision of external and internal processes, the optimization of personnel and the network of branches.

Ways of recovery

So, it is necessary to clearly know the specifics of the situation, since banks can be sanitized in several ways.

First, the sale of such a "bad" bank to another banking institution for a symbolic price.

Secondly, the reorganization of the Agency for Deposit Insurance (hereinafter - ASB) and commercial organizations.

Thirdly, a certain part of the assets with liabilities of the sanitized bank is transferred to another business entity with the status of a legal entity.

Fourth, the reorganization is carried out only by the forces of the DIA.

So, what is sanation? These are measures to prevent massive bankruptcies of banking institutions. It can be confidently asserted that if the above actions are implemented, then the closure of the bank can be avoided.

Key Issues

If you follow the third path of sanation, i.e. Transfer assets and liabilities to a legal person with the optimization of staff, such a procedure by bank staff can be perceived inadequately. In addition, it is quite successfully challenged by bank clients in the courts.

The fourth option of sanitation - carrying it out only by the DIA - is a very rare case. The procedure can only take place when there is no other investor.

Ways to solve problems

So, to solve the problematic issues that arise with the staff of the banking institution, the administration conducts explanatory work. In other words, employees of such a banking institution should clearly understand the reason for the reorganization, and what measures are taken to eliminate it. Also, employees should be able to calm and provide all the necessary information to the customers of the bank.

The next step in solving the problems arising in the process of bank rehabilitation is the organization and strengthening of the call center with the increase in the number of lines and competent operators whose main task is to prevent the outflow of depositors and the extraction of their assets by the bank's customers.

The third step should be the continuous monitoring of various media on the issue of various publications on the banking institution. We are talking about sharply negative and hostile messages from clients and third-party observers.

And the last step is to establish a fixed period of time for meetings with representatives of economic publications. Employees of the bank must provide journalists with reliable information about the financial condition of the institution. In addition, economic publications can be provided with a schedule of reorganization measures to achieve concrete results. At the same time, they should be of an applied nature. It is required to attach documents directly confirming their reality.