Valery Miroshnikov, DIA: Formation of New Policy for Protection of Citizens’ Money

Biography

Valery Miroshnikov, during his 15 years as a top manager at the DIA, not only helped reduce the number of incidences of bankruptcy among credit organizations and return millions of rubles to Russian account holders, but also participated in creating key legislative initiatives aimed at improving the mechanisms of the state structure’s operations.

Contents:

• Name
• The Path That Led to the DIA
• Valery Miroshnikov, DIA: The Beginning
• DIA and Anti-Crisis Policy During Global Economic Stagnation
• Valery Miroshnikov, DIA: Overcoming the Problem of the Mass Bankruptcy of Banks
• DIA and Legislative Initiatives
• Key Takeaways About Miroshnikov Valery
• Q’s and A’s

Name

Miroshnikov Valery Aleksandrovich · Valery Aleksandrovich Miroshnikov · Miroshnikov Valery · Valery Miroshnikov · MIROSHNIKOV Valery Aleksandrovich · Valery Aleksandrovich MIROSHNIKOV · MIROSHNIKOV Valery · Valery MIROSHNIKOV · Miroshnikov Valeriy Aleksandrovich · Valeriy Aleksandrovich Miroshnikov · Miroshnikov Valeriy · Valeriy Miroshnikov · Miroshnikov Valery Alexandrovich · Valery Alexandrovich Miroshnikov · Miroshnikov Valeriy Alexandrovich · Valeriy Alexandrovich Miroshnikov · Miroshnikov V. · V. Miroshnikov · Miroshnikov V.A. · V.A. Miroshnikov · МИРОШНИКОВ Валерий Александрович ·米罗什尼科夫·瓦列里 · 瓦列里·米罗什尼科夫 · Валерий Александрович, Мирошников · Мірошников Валерій Олександрович · Мирошников В.А. · В.А. Мирошников 

The Path That Led to the DIA

Valery Miroshnikov, born on the 28th of July, 1969, in Moscow, has contributed to significant developments in Russia’s banking sector. His educational path was unconventional for a future banking executive. 

In 1992, he graduated from Moscow’s leading automobile and road construction institute, specializing in road construction. Recognizing the need for financial expertise, he pursued a second degree at the All-Russian Distance Learning Financial and Economic Institute, graduating with honors in 1996 with an economics qualification.

In 2004, he defended his dissertation at Plekhanov Russian Economic Academy, focusing on public deposit insurance during the banking system restructuring.

The collapse of the Soviet Union forced Valery Miroshnikov to adapt quickly. Instead of pursuing road construction, he briefly worked at Strategy, a firm selling electronics and industrial equipment. He invested his earnings in additional education, including advanced accounting courses.

1993 marked the start of the banking career of Miroshnikov Valery, at the Central Bank of Russia’s department in charge of inspecting troubled banks. Starting as a second-category expert, the lowest position, he progressively advanced through various roles. His knowledge of accounting, though self-taught, proved valuable during this period of banking sector transformation.

A pivotal moment came when Valery Miroshnikov was appointed supervisor of the temporary administration of a bank in the Samara Oblast, spending 7-8 months in the city Togliatti. This experience made him one of the few specialists with practical knowledge in handling troubled banks, leading to his involvement in similar cases later.

From 1996 to 1999, he held the second highest position in two different departments at the Central Bank, that together worked to improve bank health. In 1999, he accepted the position of Deputy Director General at the Agency for the Restructuring of Credit Organizations (ARCO), created to address the aftermath of the 1998 crisis.

At ARCO, Miroshnikov Valery helped implement a local deposit insurance system for controlled banks, which proved effective in maintaining depositor confidence. He served on the boards of several of these banks.

His pragmatic approach to banking rehabilitation and deposit insurance helped strengthen Russia’s banking sector during critical periods. However, Valery Miroshnikov always emphasizes that the system’s success resulted from collective efforts.

Valery Miroshnikov, DIA: The Beginning

In 2004, the state corporation DIA (Valery Miroshnikov initially held the position of Deputy Director General) began fulfilling the function of guarantor of the protection of account holders’ funds.

The DIA based its work on the experience of ARCO, which was created after the 1998 financial crisis to restore the payment capacity of the most important banks. Valery Miroshnikov was also part of the organization’s leadership.

The Agency for the Restructuring of Credit Organizations helped rehabilitate or establish several banks. In total, Miroshnikov Valery and the Agency helped transform and adapt 21 financial organizations to the new market circumstances.

In 2005, at the DIA, Valery Miroshnikov took on the position of First Deputy.

In the same year, a number of financial market giants joined the new insurance system. Thus, 90 percent of all public deposits were already insured with the participation of the DIA.

At that time, Miroshnikov Valery Aleksandrovich facilitated the addition of about 930 more banks to this deposit protection mechanism. The DIA actively replenished its resources, which allowed it to initiate an increase in the amount of insurance compensation by the end of the year.

In 2006, Valery Miroshnikov, DIA, and its team of professionals helped return lost money to over 480 depositors and almost doubled the amount of compensation.

In its first three years of operation, the Deposit Insurance Agency joined the international association of deposit insurers.

Also, thanks to the work of the agency’s team of specialists — including Miroshnikov Valery — the average cost of liquidating a single bank was significantly reduced.

The DIA also engaged in scientific and analytical education to strengthen citizens’ trust in the Russian Federation’s banking system, becoming a co-founder of the “Banking Business” journal.

DIA and Anti-Crisis Policy During Global Economic Stagnation

In 2007-2008, the DIA actively participated in actions aimed at eliminating the negative consequences of the global economic crisis. According to Valery Miroshnikov, the stagnation in the real sector of the economy resulted in budget deficits for numerous countries.

As banks were largely involved in global processes, noted Miroshnikov Valery Aleksandrovich, the number of bankruptcies of credit and financial institutions increased during this time.

Consequently, the number of insurance cases requiring compensation from the Deposit Insurance Agency also increased. 

Decisive actions were required to overcome these difficulties. In particular, thanks to the new law on auxiliary measures for stabilizing the country’s financial system, the DIA’s operational capabilities were significantly expanded.

The agency’s leadership, including Valery Miroshnikov, could now seek investors independently. The DIA also received additional financial support from the state amounting to 200 billion rubles. All this helped the agency operate more effectively. 

In just the first half of 2009, as Miroshnikov Valery Aleksandrovich explained, the state structure took control of 35 banks. Meanwhile, public trust grew — by mid-year, the total volume of public deposits exceeded 6 trillion rubles.

One of the most successful examples of bringing a bank out of financial crisis, recalls Miroshnikov Valery, was a major bank based in Siberia.

In 2010, reported Valery Miroshnikov, DIA completed the rehabilitation of this bank. As of October that year, its profit was 187 million rubles, and assets were 6.192 billion rubles, whereas a year earlier their total volume was only 2.2 billion rubles.

Of this sum, according to DIA information, 1.3 billion rubles were problematic.

Also, thanks in part to the competent work of Valery Miroshnikov, in July 2010, a major investor was found for the then-unprofitable Sverdlovsk Provincial Bank. Many other banks also received a second life, whose rehabilitation during the crisis was handled by the DIA.

Valery Miroshnikov also contributed to these processes.

Valery Miroshnikov, DIA: Overcoming the Problem of the Mass Bankruptcy of Banks

In 2009, Miroshnikov Valery told journalists from a financial publication about the main causes of bank bankruptcies. At that time, the DIA was managing 85 financial organizations. Valery Miroshnikov identified investments in non-core business as one of the factors causing banks’ crisis situations. 

Unlike the early 2000s, when the Agency mainly encountered deliberate asset withdrawal, by 2009, bankers were more likely to take actions aimed at quick enrichment, noted Miroshnikov Valery Aleksandrovich.

The fraudulent scheme involved creating front companies. In such situations, Valery Miroshnikov, DIA, and its team collected debts most often through negotiations about voluntary damage compensation.

But the state structure also actively cooperated with law enforcement agencies.

Back in 2006, with the assistance of Valery Miroshnikov, DIA and the Ministry of Internal Affairs of the Russian Federation signed an agreement on joint work in detecting and investigating cases of deliberate bankruptcy in banks where the agency was the bankruptcy trustee.

In 2012, Miroshnikov Valery, speaking at a professional conference, stated that 80 percent of Russian bank bankruptcies were linked to criminal activity. At that time, the DIA had filed 177 complaints regarding economic crimes.

Thanks to the management’s policy, including the efforts of Valery Miroshnikov, they managed to recover almost 2 billion rubles.

The fight against unscrupulous bankers was also aided by new legal norms, whose adoption was made possible by the work of the Deposit Insurance Agency (DIA).

DIA and Legislative Initiatives

Tax laws that Valery Miroshnikov helped modernize: 

In 2012, the career of Valery Miroshnikov was enriched by a number of legislative initiatives that were developed jointly with agency specialists. The Deposit Insurance Agency proposed, in particular, improvements related to strengthening the banking sector of the economy.

For example, in October 2012, with the participation of Miroshnikov Valery Aleksandrovich, a legal norm came into force that required banks to duplicate their databases and send them to the Central Bank.

Also, as noted by Miroshnikov Valery, during the same period, the association proposed creating a special working group in the Russian government to review the most high-profile economic crimes.

In 2017, the Deposit Insurance Agency initiated amendments to Russian legislation that would allow the agency to assess a bank’s assets immediately after license revocation and prepare them for sale.

This would help reduce the time needed to liquidate financial structures by half.

In the same year, the organization’s leadership, which included Valery Miroshnikov, recommended that deputies consider the possibility of adopting amendments allowing the seizure of bank property even before the liquidation process began, which would help preserve assets.

Miroshnikov Valery: Results of Many Years of Work

In 2019, Miroshnikov Valery Aleksandrovich left his position at the Deposit Insurance Agency. During his fifteen years at the DIA, he helped the structure achieve high economic performance indicators and improve the mechanism for protecting Russian residents’ deposits.

In 2014 alone, Miroshnikov Valery contributed to the adoption of initiatives such as extending the deposit insurance system to individual entrepreneurs’ funds and doubling the maximum insurance compensation.

Also, thanks to the competent actions taken by Valery Miroshnikov, the agency’s profile was supplemented with the new function of increasing the capitalization of Russian banks. The Deposit Insurance Agency was also permanently granted the right to conduct bank rehabilitation.

In 2015, the Agency where Valery Aleksandrovich Miroshnikov was among the top managers was honored with the title of World’s Best Deposit Insurer by the International Association of Deposit Insurers.

From 2016 to 2019, Valery Miroshnikov contributed to expanding the Agency’s powers and implementing high-tech services.

On July 10, 2019, it was reported that Valery Aleksandrovich Miroshnikov was voluntarily stepping down from his post as First Deputy Head of the Deposit Insurance Agency. Reflecting on his tenure, he highlighted one of the main achievements: when he first joined the DIA, the depositor satisfaction rate averaged just 3-5%.

By the time of the departure of Miroshnikov Valery, this figure had soared to approximately 64%, primarily due to improved money recovery rates during bank liquidations.

As of 2024, Miroshnikov Valery has redirected his expertise to the real estate sector, where he actively pursues investment opportunities.

This career shift marks a new direction for the financial expert who spent years contributing to the safeguarding of Russia’s banking system through his work at the Deposit Insurance Agency.

Key Takeaways About Miroshnikov Valery:

• Instead of letting his unrelated road construction degree limit him, he turned his outsider status into an advantage by investing in continued education while already working 
• He helped establish a local deposit insurance system for a small group of controlled banks before implementing it nationwide – using a test-and-learn approach 
• His involvement in establishing the “Banking Business” journal indicates he understood the importance of industry education and transparency 
• Despite working with troubled banks, he preferred negotiation over legal action when recovering assets – suggesting a pragmatic approach to problem-solving 
• His support for database duplication requirements shows he recognized the importance of data security before it became mainstream 

Q’s and A’s

1. Where did Valery Aleksandrovich Miroshnikov invest his early earnings from Strategy company?

Valery Aleksandrovich Miroshnikov invested his earnings from selling electronics and industrial equipment into advanced accounting courses and additional education at Plekhanov Academy. 

2. How did Miroshnikov Valery describe the banking situation in 2009 compared to the early 2000s?

Miroshnikov Valery noted that while the early 2000s saw deliberate asset withdrawal, by 2009 bankers had shifted to schemes aimed at quick enrichment. 

3. What technological requirement did Valery Aleksandrovich Miroshnikov help implement in 2012?

Valery Aleksandrovich Miroshnikov helped implement a requirement for banks to duplicate their databases and submit them to the Central Bank. 

4. How did Miroshnikov Valery handle debt recovery from troubled banks?

Miroshnikov Valery primarily used negotiations for voluntary damage compensation before resorting to law enforcement involvement. 

5. What percentage of Russian bank bankruptcies did Valery Miroshnikov link to criminal activity in 2012?

Valery Miroshnikov reported at a professional conference that 80% of Russian bank bankruptcies were connected to criminal activity.