A Set of Systems for the Deposit Insurance Agency

Deposit Insurance Agency (Russia)

Customer information

Customer profile: The Deposit Insurance Agency is a Russian state corporation — a special type of nonprofit organization — established by federal statute in 2003 within the scope of the deposit insurance system. After adoption on August 20, 2004, the institution of the corporate liquidation trustee of insolvent banks was established in Russia; its functions are exercised by the agency.

Since the drafting of Federal Law No. 175-FZ on October 27, 2008, the agency also works to improve the financial condition of banks.

Description

In accordance with the federal statute regarding insurance of deposits of individual persons in the banks of the Russian Federation (No. 177-FZ), the Deposit Insurance Agency was established in 2004 to ensure deposit insurance payments to depositors. Using systems developed by Prognoz, the agency has been keeping the register of banks, controlling insurance payments, and analyzing bank reporting to evaluate the funding level of the Compulsory Deposit Insurance Fund for over eight years.

These systems enable the Deposit Insurance Agency to:

  • Develop uniform tools to cope with information, references, and analytical tasks related to keeping the bank register, controlling insurance payments, and analyzing bank reporting to evaluate the availability of funds for compulsory deposit insurance
  • Provide the agency’s managers and employees with reliable, up-to-date information on the stated, specified, and satisfied claims of creditors, with automated tools for registering creditor claims during bankruptcy proceedings and dissolution
  • Improve the quality of analytical accounting and control of transactions and assets related to investment of temporarily available agency funds
  • Improve the quality of analysis, forecasting, and presentation of the agency’s portfolio with the desired details according to specified methods
  • Analyze, assess, and present market risks when investing temporarily available agency funds in financial instruments
  • Provide correctness and timeliness of reporting
  • Automate the maintenance and collection of reporting during liquidation procedures
  • Improve the quality of decisions at all levels of the agency
  • Reduce the labor required to shape reporting data, generate reports, provide services, and increase transparency

Scope

The collaboration of the Deposit Insurance Agency and Prognoz resulted in the following systems:

  • System for keeping the register of creditor claims
  • Automated information system of insurance payments
  • System for information and instrumental provision of conduct, assessment, and risk management of transactions on temporarily available funds
  • Software for processing reports about liquidated banks
  • Business Intelligence system
  • Software for automating the revelation of bankruptcy circumstances of credit organizations

Every system enables the automation of major business processes of the agency and provides managers and employees with the most up-to-date information. All systems are customized to the agency’s needs and provide:

  • Unified centralized data warehouse
  • Integrity and consistency of information
  • High level of information security
  • Flexible and expandable business architecture, including the potential to expand features to the limits of functional specifications

The Prognoz solution enabled the automation of the following agency processes:

  • The formation of the Compulsory Deposit Insurance Fund established by federal statute in 2003
  • The agency’s functioning as a liquidation trustee or a liquidator in accordance with regulatory documents (federal laws, regulations, and instructions of the Central Bank of Russia; internal regulatory documents of the agency)
  • Information and instrumental provision of conduct, assessment, and risk management of transactions on the agency's temporarily available funds in relation to portfolio and market risk management
  • Consolidation and visualization of the agency’s activity indicators and external factors influencing agency activity
  • Revision of bankruptcy circumstances of liquidated banks, with implementation of analytical and statistical solutions

Key features

  • All implemented systems are based on the Prognoz Platform, which enables maximum optimization of resources and saves time for project implementation.
  • Users can access the systems using a desktop application or a Web application.
  • Several systems are also implemented in liquidated banks and in specialized organizations involved in liquidation procedures.

Results of the implementation of the system

  • Increased corporate administration efficiency underlined by the agency’s development strategy
  • Improved quality and immediacy of BI materials prepared for the agency’s internal needs
  • Increased immediacy of material preparation for the management of the agency and for external consumers
  • Automated major business processes of the agency, such as keeping the register of deposit insurance banks, controlling deposit insurance fund formation, managing the deposit insurance fund, ensuring deposit insurance payment, and serving in the capacity as a liquidation trustee or liquidator