Insolvency of Financial Institutions: Rehabilitation or Winding Up – What Is the Best for Clients and Financial Markets? (chaired by the Bank of Russia)

Friday , 19 May
15:55 - 17:35

Hall #1, General Staff Building (6-8, Dvortsovaya sq.)

Track: International Insolvency Forum

Description

Organizer of the discussion session – The Central Bank of the Russian Federation

 

Prior to the global financial crisis of 2008-2009, the widespread take on the insolvency of financial players (banks, insurers, financial market infrastructure providers, etc.) was to let their bankruptcy proceed to winding-up, if the organization showed signs of insolvency (bankruptcy). The proper procedures had to come into play as early as feasible, so as to assure the maximum satisfaction of creditors’ claims, and secure the insolvency proceedings as such. The need was generally recognized to put the safeguards in place to protect the investors (both individuals and, in many economies, also legal entities) and, in some cases, also to protect other retail consumers of financial services, e.g., retail investors, insurance sponsors, etc.

The global financial crisis of 2008-2009 ushered in a new perspective on the issue of the insolvency of financial players (most notably, the major financial institutions critical to system continuity), and compelled the parties concerned to look for new ways to settle the insolvency of such entities. Some of the settlement instruments offered by the international community have found their way into Russian legislation and the practices of the Bank of Russia and the Investment Insurance Agency. However, what is urgently needed is a more comprehensive take on the insolvency settlement of all financial players, wherein special guidelines shall be provided in respect of banks, insurance companies, non-government pension funds, and system-critical financial institutions. This task is a priority that must be addressed in the nearest term.

The plan is to discuss the following at the roundtable:

  • Treatment of the settlement of financial organization insolvency in Russian and international practice.
  • The trade-off of priorities – financial recovery or winding-up? – as applied to financial entities such as banks and insurance companies.
  • Challenges presented by the application of bail-in instruments in Russian and international practice.
  • Russia’s latest legislative novelties in the insolvency settlement administration of banks and insurance companies.
  • The role of public institutions in the process of the insolvency/bankruptcy settlement administration of financial entities.

Moderator

Christoph Paulus

The Secretary, United Nations Commission on International Trade Law (UNCITRAL)

Speakers

Vladimir Chistyukhin

Deputy Chairman, Bank of Russia

Alexey Guznov

Director of the Legal Department, Bank of Russia

Svetlana Karelina

Director of Bankruptcy LL.M Program, Chair for Business Law, Lomonosov Moscow State University Law School, Member of the Russian Supreme Court Scientific Advisory Board

Larisa Kudryakova

Director of department for liquidation of financial institutions, Deposit insurance agency

Vasiliy Pozdyshev

Deputy Governor, Bank of Russia


* The Programme may be subject to change