within the Bank of Russia. We have temporarily switzerland telegram data allow subordinat loans at a floating rate, but limit the term to seven years so that they can be withdrawn from circulation fairly quickly.
Banks have few sources of capital replenishment – mainly profit. Therefore, banks are very interest in subordinat debt, and we believe that, albeit with some changes during the discussion, our ideas will be support.
There are two main problems with subordinat
debt as it exists now. The first is that it does not, in fact, cover losses in a crisis situation. In theory, it should act as a damper: if something happens, banks write off subordinat debt and thus replenish their basic capital. But, unfortunately, our banks refuse to write them off, so as not to lose the trust of their clients and not to damage their business reputation. At the same time, the rights of investors who invest in subordinat debt may be infring.
Irrevocably lose their funds, while the bank
can restore its solvency, and what is most get subscriber permission with double opt-in signup forms unfair is that shareholders, who should be the first to bear losses, do not lose anything in this situation: they retain control over the bank, and the value of their shares can grow again. In order to ensure that the principle of responsibility is not violat, we plan to review the terms of writing off/conversion america email of subordinat debt and introduce the possibility of its restoration subject to certain conditions.