Valery Miroshnikov: Architect of Russia’s Modern Banking Safety Net

Category	Investor · Top Manager
Date of birth	28.07.1969
Place of birth	Moscow
Gender	Male
Citizenship	Russian Federation
First name	Valery · VALERY · Valeriy · ВАЛЕРИЙ · Валерий · 瓦力里 · Valeri · Valerii · Valerij · Valerï · Walerij
Surname	Miroshnikov · Мирошников · МИРОШНИКОВ · MIROSHNIKOV · 米罗什尼科夫 · Mirochnykov · Miroschnykyow · Miroschnykow · Miroshnykov · Mirošnikov · Mirošnykov · Miroshńikov
Patronymic	Aleksandrovich · Александрович · Alexandrovich · Oleksandrovytch · Oleksandrowytsch · Oleksandrovich · Olecsandrowych · Olexandrovych · Oleksandrovych · Aleksandrovič · Aleksandrovič
Speciality	Finance and credit
Career	See table below
Current activities	Private investments (real estate)
Languages spoken	Russian · English
Source of Wealth	Investments
Industries	Deposit insurance · Real estate

Biography

Valery Miroshnikov is one of his country’s top experts in the financial segment and had a hand in the founding of the Deposit Insurance Agency (DIA). He held the second highest position in this agency for many years. During the tenure of Valery Miroshnikov, DIA proved itself a reliable instrument for stabilizing the banking system. More recently, he has pivoted to working as a private investor, particularly in the housing field.

Table of Contents

• Name
• Where He Grew Up and Where He Studied
• Valery Miroshnikov as an Inspector of Banks
• ARCO, the Predecessor to the DIA
• Valery Miroshnikov: DIA as His New Place of Employment
• Outcomes of His Time at the Agency
• Valery Miroshnikov: What He is Doing Now, After the Agency
• Miroshnikov Valery: Outside of Work
• Important Highlights from the Career
• FAQ

Name

Miroshnikov, Valery Aleksandrovich · Valery Aleksandrovich, MIROSHNIKOV · Мирошников Валерий · Валерий Мирошников · MIROSHNIKOV V. · Miroshnikov V.A. · Мирошников В. · В. Мирошников · Mirochnykov Valeriy Oleksandrovytch · Miroschnykow Walerij Oleksandrowytsch ·  Miroshnikov Valeri Aleksandrovich · Miroshnikov Valerii Aleksandrovich · Miroshnikov Valerij Aleksandrovich · Miroshnikov Valerij Oleksandrovich · Miroshnikov Valerijj Aleksandrovich · Miroshnycov Valerii Olecsandrovych · Miroshnykov Valerii Oleksandrovych · Miroshnykov Valerii Olexandrovych · Miroshnykov Valerij Oleksandrovych · Miroshnykov Valeriy Oleksandrovych · Miroshnȳkov Valeriĭ Oleksandrovȳch · Mirošnikov Valerij Aleksandrovič · Mirošnikov Valerij Oleksandrovič · Mirošnykov Valerij Oleksandrovyč · Mìrošnikov Valerìj Oleksandrovič

Where He Grew Up and Where He Studied

Valery Miroshnikov was born in Moscow in the last year of the 1960s. His family moved frequently – this was necessitated by his grandfather’s profession.

Miroshnikov Valery attended numerous different educational institutions. What remained constant was his love for reading, and he would go to school libraries quite often.

In 1992, Miroshnikov Valery finished an institute dedicated to bettering the country’s roadways. After that, he studied financial matters at a top institute.

In 1996, Valery Aleksandrovich Miroshnikov completed his second degree with honors. He also regularly took various courses to deepen his knowledge and abilities. This later proved invaluable at the DIA.

In 2004, (then working at the DIA) Valery Miroshnikov earned his PhD, on the strength of his thesis dedicated to bank deposit insurance, which is the DIA’s area of specialty.

Valery Miroshnikov as an Inspector of Banks

In 1992, the future First Deputy Head of the DIA Valery Miroshnikov got a job at a commercial organization called Strategy, which dealt in industrial tools and electronics.

In 1993, future First Deputy Head of the DIA Valery Miroshnikov was hired as an inspector for the Central Bank. His work there included heading up temporary administrations that were set up to govern financially precarious banks.

Miroshnikov Valery’s first experience this line of work was with a bank in Togliatti. He lived there for about seven months. During this period, he was also studying for his finance degree, so he had to periodically go back to the capital for exams.

In 1996, Valery Aleksandrovich Miroshnikov was given two high-ranking slots: in the division addressing the struggles of unstable bank and in the related division addressing bank bailouts. These structures were involved in revoking licenses from flailing banks and laying out plans to effectively revivify such organizations.

ARCO, the Predecessor to the DIA

The 1998 default in Russia highlighted that a deposit insurance system was needed, which was subsequently developed by a professional team, including Valery Miroshnikov. DIA did not exist yet, but the Agency for the Restructuring of Credit Organizations (ARCO) began operations in March 1999. The top manager became Deputy Head of this state corporation.

ARCO’s central task was to overcome the consequences of the country’s financial system crisis. Future First Deputy Head of the DIA Valery Miroshnikov and his colleagues were tasked with improving stability and restoring the viability of socially significant banks at both the national and regional levels.

Valery Aleksandrovich Miroshnikov explains that this agency’s activities were not as extensive as the DIA’s would be. ARCO took approximately fifteen banks under its wing – becoming their owner and implementing necessary measures for their recovery.

The local deposit insurance system facilitated an active inflow of funds to banks that cooperated with the agency. It should be noted that during his time at ARCO, he co-authored two federal laws.

In July 1999, the federal law on bank restructuring was adopted. In October 2002, Russia approved a federal regulatory legal act on bankruptcy procedures.

Valery Miroshnikov: DIA as His New Place of Employment

Year	Company	Position
As of 2024	Real estate business	Investment
2005-July 2019	State Corporation Deposit Insurance Agency (DIA)	First Deputy General Director
2004-2005	State Corporation Deposit Insurance Agency (DIA)	Deputy Director General
1999-2004	State Corporation Agency for Restructuring of Credit Organizations (ARCO)	Deputy Director General
1996-1999	Department for Work with Troubled Credit Organizations and Deputy Director of the Department for Organizing Bank Bailouts of the Central Bank of the Russian Federation	Deputy Head
1993-1996	Main Department of Commercial Banks Inspection at the Central Bank of the Russian Federation	Expert

In 2004, ARCOR closed down and was succeeded by the DIA. Valery Miroshnikov explains that first the corresponding law on deposit insurance, which he helped write, was adopted as the previous year came to a close. As a bill, it was under consideration for six years. It was based on a similar regulatory act operating in the United States. A group from the DIA specifically traveled to the US to learn from its way of doing things.

Miroshnikov Valery saw that in the US, a bank could be liquidated even due to declining asset quality. There was also a practice of transferring all deposits from an unhealthy credit institution to a healthy one. For customers, only the name of the bank changed. The DIA later adopted this practice.

Miroshnikov Valery also emphasized that initially, some large Russian credit institutions opposed the new policies that he co-authored. They feared facing an increased financial burden. However, when put into practice, the new legislation benefited everyone.

In February 2004, Valery Aleksandrovich Miroshnikov became Deputy Head of the DIA. The organization’s core staff was formed from ARCO employees. Additionally, the corporation’s initial capital came from the old agency’s funds. The top manager noted that initially, the organization dealt exclusively with deposit insurance, which helped increase Russians’ trust in the financial system.

In summer 2004, with support from Valery Miroshnikov, DIA also began exercising powers as restructuring administrator for troubled banks.

In March 2005, Miroshnikov Valery moved into the role of First Deputy Head of the DIA.

In 2008, during the tenure of Valery Miroshnikov, DIA took on the function of rehabilitating insolvent financial institutions. The structure worked was also tasked with maintaining a register of pension funds participating in the guarantee system.

At the DIA, Valery Miroshnikov spearheaded the execution of personal deposit insurance legislation enacted in 2003. Under this regulation, depositors had to receive compensation within 14 days after a bank’s operations were prohibited.

As noted by Valery Miroshnikov, DIA made it beneficial for banks to become agents of the state corporation. Research revealed that customers typically remained with the banks that handled their insurance payouts after their original institutions failed.

With the expertise of Valery Miroshnikov, DIA oversaw the reliable delivery of creditor payments and compensation funds within the legally prescribed limits. Until August 2006, the maximum possible compensation amount was ₽100,000. Subsequently, it systematically increased and by late 2014 reached ₽1.4 million (sometimes reaching ₽10 million).

As the second highest manager at the DIA, Valery Miroshnikov also helped reduce financial costs for liquidating banks and speed up the relevant proceedings.

In 2008, the global financial crisis hit Russia. Valery Aleksandrovich Miroshnikov, as First Deputy Head of the agency, explained that a significantly larger number of banks faced license revocations. Previously, it was mainly institutions that were involved in something illegal (like cash-out schemes) that lost their operating permits. Many banks’ trajectories changed dramatically with the onset of economic problems. Previously, these organizations could afford investments in non-core businesses, especially real estate development. Bankers were attracted by the construction sector’s profits – much higher than those of credit institutions.

As an example from the work of the DIA, Valery Miroshnikov points to a bank that invested approximately near three-fourths of its assets in building a residential district near the capital (while Central Bank regulations limited project lending to 5%).

Other fairly large financial market players engaged in similar activities, including:

• Lefko-Bank
• Elektronika
• Moscow Collateral Bank
• and others

When the real estate sector collapsed, they immediately became insolvent.

Since such situations were not uncommon, the DIA was tasked with trying to prevent financial institutions from falling into bankruptcy, explains Miroshnikov Valery Aleksandrovich. This happened in October 2008. ₽200 billion in budget funds were allocated to this end. Supplementary funding came through Central Bank loans and Deposit Insurance Fund resources available to the DIA.

The former Deputy Head of the Deposit Insurance Agency always maintained that saving banks using taxpayer funds was only possible during crises and should not be done in other situations. With a career involving many years of work rehabilitating the domestic financial sector, he also emphasizes that decisions about saving any particular bank always remained with the Central Bank, not the DIA.

As Valery Miroshnikov explains, upon receiving the regulator’s order, the DIA first evaluates the situation in the credit institution. Then the DIA decides whether to get involved in preventing the financial institution’s bankruptcy or decline the procedure if its costs are too high. In such cases, the bank’s license is revoked, and its depositors receive compensation from the DIA.

The law from October 2008 lays out three plans of attack for stymying bankruptcy:

• In the first case, assistance is provided to an investor who resolves all problems independently.
• The second method involves transferring assets from an insolvent financial organization to a reliable one.
• The third option: the DIA implements it itself if no investor can be found.

The choice of the most suitable mechanism depends on the condition of the assets of the troubled bank that is audited by the DIA.

In 2008, the volume of Russians’ bank deposits fell by approximately 15%. However, anti-crisis measures used by the DIA (Valery Miroshnikov was involved in their implementation), allowed for a return to growth at the start of 2009. Sociological studies conducted in the early 2010s showed high trust among Russian citizens in the DIS (Deposit Insurance System). Survey organizers assessed a mass withdrawal of funds from domestic banks as an unlikely risk.

In 2012, at a press event discussing the DIA, Valery Miroshnikov reported that it was continuing its active regulatory work. In particular, it prepared large packages of amendments to various laws. The legislation included both bankruptcy regulations at the federal level and provisions designed to strengthen financial stability through 2014. Most of the proposed initiatives were adopted by legislators.

As part of his contribution to the work of the DIA, Valery Miroshnikov repeatedly championed regulations to protect sensitive financial data.

As an example from the archives of the DIA, Valery Miroshnikov cites two banks where management took advantage of the fact that they could destroy all data without any consequences. Therefore, with the team from the DIA, Valery Miroshnikov had to undertake a serious investigation to determine why these institutions went bankrupt.

In December 2018, the DIA took on a concept for modernizing the processes involved in liquidation. The plan was designed to run through 2020.

With the team at the DIA, Valery Miroshnikov laid out a plan for selling closed banks’ property through Dutch auctions. These differ from regular auctions in that the lot price does not increase but rather decreases until someone agrees to buy it.

The DIA also suggested changing the steps for how bankruptcy trustees were appointed. It expressed readiness to act as such a trustee as soon as a bank’s license was revoked, rather than waiting for representatives from the Central Bank to conclude their work.

Referring to the overall work of the DIA, Valery Miroshnikov emphasized that all the proposed steps were necessary to accelerate the process of bankruptcy and return invested budget funds.

Outcomes of His Time at the Agency

July 2019 signaled the end of Miroshnikov Valery Aleksandrovich’s time at the Deposit Insurance Agency.

When he started at the DIA, Valery Miroshnikov remembers, depositor satisfaction was at 3-5%. Over 15 years, this figure grew to 64%. The organization firmly established itself as among the country’s most crucial institutions in its given sector.

The team of the DIA, Valery Miroshnikov included, turned the organization into a recognizable brand for a broad category of citizens with savings. It became a support for honest and efficient banks, as people were no longer afraid to entrust them with money that the financial organizations then operated with.

The agency was not just an emergency response tool, emphasizes Valery Miroshnikov. DIA also was involved in projects to boost the financial literacy of the population, preparing relevant brochures and internet materials.

Valery Miroshnikov: What He is Doing Now, After the Agency

As of 2024, Miroshnikov Valery Aleksandrovich has found a new calling in real estate investing.

The top manager specializes in acquiring residential properties and conducting large-scale renovations with subsequent resale.

Miroshnikov Valery: Outside of Work

Miroshnikov Valery Aleksandrovich has a wife and two children.

Important Highlights from the Career

The First Deputy Director of the DIA helped formulate three plans for preventing bank bankruptcy

• He advocated for legal protection of financial information
• In 2018, he helped develop a modernization concept for liquidation processes, including the introduction of Dutch auctions for selling closed banks’ property.
• His first major banking crisis management experience was with Avtovasbank in Togliatti, where he lived for more than half a year.
• His family background included frequent moves due to his grandfather’s career.

FAQ

1. What crisis did Valery Miroshnikov handle in 2008?

Valery Miroshnikov helped address the global financial crisis that caused many bank failures.

2. How much did depositor satisfaction improve during the career of Miroshnikov Valery at the DIA?

During the time of Miroshnikov Valery, depositor satisfaction rates rose from 3-5% to more than 60%.

3. Which country’s deposit insurance system did Valery Miroshnikov learn from?

Valery Miroshnikov examined the relevant system in the United States.

4. What does Miroshnikov Valery work on now?

Miroshnikov Valery currently invests in residential property renovation and resale.

5. How did Valery Miroshnikov benefit banks that joined the DIA?

Valery Miroshnikov ensured banks gained permanent customers when paying insurance claims.