07.10.2016
PLATINA CB LLC informs you about closing some of its correspondent accounts
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25.07.2016
Open an account in the Platina Bank in 5 minutes
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05.07.2016
Platina Bank offers rental of safe deposit boxes in the Fedukovo branch
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03.06.2015
Working hours of the Platina Commercial Bank during the Russia’s Independence Day
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08.08.2013
Working hours of Platina Commercial Bank's cash office change from August 12
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MORE NEWS

Funding policy

Carrying out active operations in the credit and financial market of Russia, given the condition of the legal system, is associated with high risks. Taking this fact into consideration, the Bank, keeping in mind its profit, focuses on safeguarding clients’ funds and absolute fulfillment of its obligations to the clients.

The Bank traditionally follows the policy of reasonable conservatism in the field of loan services. The basis of the Bank's current practices is a thorough knowledge of the financial status of the borrower and their credit history, understanding their challenges, interests, goals and strategies of their economic activity, the ratio of objective and subjective risk assessment.

When it comes to shaping its resource base the Bank applies a differentiated approach for raising liabilities and adheres to the policy of not using deposits of individuals for funding the extended loans.

Policy of not using deposits of individuals for funding the extended loans

The bank does not view individuals as a substantial and reliable source of liabilities due to inequality of civil law relations between banks and depositors.

As a supportive measure for individual depositors the government provides a legally stipulated right of a depositor to terminate their deposit agreement at any point in time regardless of the interests of the Bank or the fact that deposits of individuals may be used to finance the extended loans. Besides the Bank views individuals as invariably unqualified financial investors who do not have the appropriate financial education and are especially sensitive to false information, unverified rumors, and black PR. The bank believes that funds of the individuals are one of the most expensive sources for liabilities. Expenses for raising such funds and their service can be offset only by undertaking risky asset transactions, which contradicts the conservative strategy of the Bank. For the above mentioned reasons the Bank recognizes deposits of individuals as improper liability for funding loans and is not planning on increasing number of deposits of individuals.

When it comes to implementing its asset management strategy the Bank prioritizes improving asset quality, enhancing risk management system, and enhancing asset and liability management system.

As far as loan services go, the Bank traditionally follows the policy of reasonable conservatism. The basis of the Bank's current practices is a thorough knowledge of the financial status of the borrower, their credit history, understanding problems they are facing, interests, goals and strategies of their economic activity, and thorough analysis of the ratio of objective and subjective risk assessment.

The bank only extends loans to the borrowers it trusts who have a clear and transparent business structure on security that is many times bigger than the loan amount. As collateral for the credit portfolio only highly liquid securities are used such as land plots, industrial-purpose ones for the most part, as well as real property. The bank does not consider extending loans to fields with a high risk on default, particularly, retail and production enterprises.

Thanks to its strict loan policy throughout its operation, the Bank’s default losses are under 0.01% of the total amount of extended loans, and currently the Bank continues to have one of the lowest overdue loan indices on the banking market.

In conditions of known risks, a significant part of resources is placed on the correspondent accounts in the first-class western banks because the limiting factor in financing is currently not the shortage of resources but the lack of secure objects of investments. The size of the balance of ultra-liquid funds usually comprises at least half of the Bank’s liabilities.

The Bank intends to further adhere to the policy chosen for active operations and offers its clients a range of high level services in the field of credit financing, focusing on the individual approach and maximum possible satisfaction of the each Client’s needs.