Sanation is carried out either in the form of a merger, or in the form of accession.However, in not all cases, financial institutions are seamlessly and in due time fulfill the Bank of Russias financial recovery requirements.In Russia, it is implemented by the Deposit Insurance Agency (DIA), which performs temporary management functions until the election of a new bank manager.During the sanation procedure, the bank receives financial assistance in the form of a loan with a minimum interest rate.The sanation procedure has a number of visible advantages.First, the financial organization does not cease to exist, it has the opportunity to restore its activities and return to the fulfillment of the usual functional duties.
Its employees retain jobs, which is important in the context of the social importance of the work of banks.
Extraction of additional funds for settlement with depositors and other customers of the bank can be ensured by the sale of part of the property of the financial organization.
So, the financial organization can realize its assets that do not generate income, lease out premises or other property, assign assets.
It should be noted that in comparison with the deprivation of a license bank, sanation is a very soft measure.
After all, in the case of depriving a license, depositors of a financial institution are reimbursed much less money.