OREANDA-NEWS. March 14, 2011. Regular meeting of the State Corporation “Deposit Insurance Agency” (DIA) Board of Directors was held. The meeting was chaired by Sergei Ignatiev, the Bank of Russia Chairman.

The meeting reviewed and approved DIA annual report for 2010. The document contains detailed information about DIA activities during 2010 with the focus on Deposit Insurance System (DIS) condition, use of Mandatory Deposit Insurance Fund (DIF) resources, execution of receiver (liquidator) and bank bankruptcy prevention functions, as well as DIA financial reports. In accordance with the law, the annual report will be submitted to the Russian Federation Government and the Bank of Russia, and placed on the official DIA website, while it’s summarized data and annual balance sheet will be published in the “Vestnik of the Bank of Russia” and “Rossiyskaya Gazeta”.

The Board of Directors reviewed fulfillment of DIA operations’ key performance indicators set for 2010 containing corporate and DIA managers’ key performance indicators. All planned indicators were fulfilled.

The meeting participants took into consideration information on DIF resources investment for the forth quarter of 2010, as well as the results of placing temporary idle resources appropriated for implementing the Agency’s participation in bank bankruptcy prevention. During this period the Agency conducted prudent investment strategy on the whole retaining earlier established structure of its investment portfolio.

Based on the results of 2010 activities DIA revenues reached RUR 27.6 billion, including income from DIF resources investment of RUR 13.4 billion, income from placement property contribution funds transferred to the Agency for the purposes of bank bankruptcy prevention – RUR 2.1 billion. Average weighted yield of DIF resources investment taking into account securities revaluation was 12.1% per annum; and the income from placement of property contribution temporary idle resources was 7.4% per annum. Based on DIA operations’ results the annual profit before tax reached RUR 18 billion, with the net profit about RUR 15.6 billion. Of the above amount - RUR 11.8 billion was added to the DIF, with the remaining RUR 3.8 billion designated to increase the Russian Federation property contribution.

Taking into consideration changes into the legislation in 2010, the Board of Directors approved the new Procedure for conducting open competition to select appropriate company for auditing DIA annual financial statements and allocation of DIF resources. The Board meeting also approved changes in DIA Board of Directors Terms of Reference caused by amendments into the Federal law “On Non-Commercial Organizations” that came into force with respect to state corporation status.

The Board took into consideration information about measures implemented by DIA during the period from November 2010 to February 2011 that were aimed at banks’ financial rehabilitation and using for these purposes the Russian Federation property contribution funds. During the reported period DIA continued its involvement in financial rehabilitation of 11 banks. Restructuring operations reached the final stage for “Bank24.ru”; and increase in the charter capital of AKB “Rossiysky Capital” (OAO) and “Gubernsky bank “Tarkhany” (OAO) was accomplished.

The meeting reviewed other issues connected with DIA activities.