Valery Miroshnikov: Career at the DIA

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Сategory	Investor · Top Manager
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
Date of birth	28th of July, 1969
Place of birth	Moscow
Gender	Male
Nationality	Russian
First name	Valery · VALERY · Valeriy · ВАЛЕРИЙ · Валерий ·瓦列里· Valeri · Valerii · Valerij · Valeriĭ · Walerij
Last name	Miroshnikov · Мирошников · МИРОШНИКОВ · MIROSHNIKOV ·米罗什尼科夫· Mirochnykov · Miroschnykow · Miroschnykow · Miroshnȳkov · Mirošnikov · Mirošnykov · Mìrošnikov
Patronymic	Aleksandrovich · Александрович · Alexandrovich · Oleksandrovytch · Oleksandrowytsch · Oleksandrovich · Olecsandrovych · Olexandrovych · Oleksandrovȳch · Aleksandrovič · Oleksandrovič
Speciality	Finance and credit, economist
Career	Expert of the Main Department of Commercial Banks Inspection at the Central Bank of the Russian Federation (1993-1996) · Deputy Head of the 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 (1996-1999) · Deputy Director General of the State Corporation “Agency for Restructuring of Credit Organizations” (ARCO) (1999-2004) · Deputy Director General of the State Corporation “Deposit Insurance Agency” (DIA) (February 2004-March 2005) · First Deputy General Director of the State Corporation “Deposit Insurance Agency” (DIA) (March 2005-July 22, 2019) · Working in the real estate investment business (as of 2024)
Current activities	Real estate investment
Languages spoken	English, Russian
Source of Wealth	Investments

Biography 

Valery Miroshnikov is an influential expert in the financial industry. His career path includes experience at the Central Bank and the Deposit Insurance Agency. Valery Aleksandrovich Miroshnikov is co-author of several federal laws aimed at improving the reliability of the domestic banking sector.

Contents:

• Educational Background
• Valery Miroshnikov: Early Career
• Career at ARCO
• Miroshnikov Valery: Work at the DIA
• Legislative Initiatives
• Valery Miroshnikov, DIA: Work Results and Current Projects
• Highlights from the Professional Activity of Valery Miroshnikov
• FAQ

Educational Background

Valery Miroshnikov was born in 1969 in the capital of the USSR. As a member of a military family, he had the chance to travel extensively around the country. The future First Deputy Director of the DIA Valery Miroshnikov attended several schools in different regions. He received his diploma from Moscow School #903. He devoted much time to reading and regularly visited the international literature library.

In 1992, Valery Miroshnikov graduated from the Moscow Automobile and Road Construction State Technical Institute, specializing in road engineering. Once he started earning money, he invested a significant portion of his income in his education, including accounting courses.

In 1996, Valery Aleksandrovich Miroshnikov, who by then already had experience in the banking sector, completed his correspondence studies at the All-Russian Distance Institute of Finance and Economics with excellent grades (this university is now part of the Financial University under the government of the Russian Federation).

Valery Miroshnikov: Early Career

In 1992, Valery Miroshnikov, having received his first professional qualification, was assigned to an enterprise working in road construction and maintenance. However, he chose a different path. Miroshnikov Valery joined a company called Strategy that sold industrial electrical equipment. Valery Miroshnikov, who would later be involved in the banking sector, worked at the organization for several months. According to him, this work brought good income, as the country had faced a serious shortage of such equipment in preceding decades.

In 1993, Valery Miroshnikov joined the Central Bank department responsible for inspecting the domestic banking industry. During that period, many employees of the financial regulator left for the commercial sector. This led to staff shortages, which meant people without specialized education were often hired. Valery Miroshnikov, who had already undergone accounting training, had a competitive advantage over other candidates.

Valery Aleksandrovich Miroshnikov started at the bottom of the career ladder and quickly reached the position of Chief Expert. He carried out inspections of financial institutions in various regions of the country and headed temporary administrations that managed troubled credit institutions. It was then that Valery Miroshnikov decided to pursue higher education in finance, as he felt he needed to improve his qualifications. For several months, the expert lived in Togliatti, managing Avtovasbank under external administration, while simultaneously traveling to Moscow to take exams. When the country expanded its system of temporary bank administrations, Valery Aleksandrovich Miroshnikov was brought in as a consultant. At that time, he was one of the few domestic specialists with relevant experience.

From 1996 to 1999, Valery Miroshnikov served as Deputy Head of the Central Bank’s department for dealing with insolvent financial institutions. He also held the position of Deputy Head of the department responsible for bank rehabilitation. There, Valery Miroshnikov’s work involved revoking licenses from credit organizations. He also developed methods for rehabilitating troubled financial structures.

Career at ARCO

Even before the DIA, Valery Miroshnikov worked at a state corporation called ARCO that began forming the deposit insurance institution in Russian banking.

In 1999, Valery Aleksandrovich Miroshnikov took the position of Deputy General Director in the newly established organization. It was founded to mitigate the damage caused by the crisis in economic security in the late 1990s and normalize the operations of key federal and regional banks. At that time, many of their depositors lost their money, which created social instability.

Valery Miroshnikov recalls that initially, he did not want to leave the Central Bank. However, his supervisor – the regulator’s Deputy Chairman – convinced him to try this new field. The specialist did not regret his choice.

Valery Miroshnikov helped create the pilot version of the deposit insurance system. It covered 14 banks and significantly increased public trust in these credit organizations, ensuring rapid deposit growth. Over five years, the agency restructured 21 financial institutions.

During that period, Valery Aleksandrovich Miroshnikov was also elected Chairman of the boards of directors at the Peter the First and SBS-Agro banks.

Miroshnikov Valery: Work at the DIA

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 early 2004, ARCO was closed and replaced by a new structure, known as the Deposit Insurance Agency, or DIA. Valery Miroshnikov became the Deputy General Director. The agency initially specialized only in deposit insurance for domestic banks. But by mid-year, it began serving as a corporate bankruptcy administrator for financially unstable credit institutions.

In 2005, Valery Miroshnikov became the First Deputy Head of the DIA. From 2008, when Russia was affected by the global economic crisis, the organization began handling bank rehabilitation. Another of the agency’s tasks was maintaining a registry of pension funds participating in the guarantee system.

At the DIA, Valery Miroshnikov was responsible for implementing the law requiring that depositors at banks deprived of a license must be compensated within two weeks, up to the insured amount. Initially, the limit was 100,000 rubles, gradually increasing over time. It was last revised in late 2014 and raised to 1.4 million rubles. In certain cases (such as escrow accounts), the upper compensation limit can be higher – up to 10 million rubles.

With his colleagues from the DIA, Valery Miroshnikov created a situation where financial institutions began competing for the right to become DIA agent banks. Practice showed that most depositors from troubled banks became clients of the financial institutions that paid out their insurance claims, bringing significant benefits to these institutions.

The implementation of the agency’s authority as a bankruptcy administrator for unhealthy financial institutions was another area overseen by Valery Miroshnikov. DIA, with his involvement, ensured reliable settlements with creditors. It also simplified and accelerated the bank liquidation procedure, making it less costly.

In 2009, Valery Miroshnikov, the Deputy Head of the Deposit Insurance Agency, explained to journalists how the crisis affected this process. Before 2008, license revocations were usually related to illegal operations, such as cash withdrawal schemes. Enormous sums passed through institutions involved in these activities, even though such organizations essentially had no real clients.

With the onset of the economic downturn, deposits crashed by 15%, and many large credit institutions found themselves at risk. As the Deputy Head of the DIA Valery Miroshnikov explained, the history of these institutions typically included high expenses for non-core activities. For example, many bankers were tempted by the huge profits that developers were making and began actively investing in real estate. One agricultural bank invested about 70% of its assets in residential construction in the capital region. Thus, notes Miroshnikov Valery, the organization disregarded one of the Central Bank’s key regulations, which sets the maximum loan size at 5% of the financial organization’s total asset value.

Due to similar problems being observed in many banks with large client bases, the DIA was assigned the function of preventing the collapse of socially significant credit institutions. To this end, 200 billion rubles from the federal budget was directed to the DIA. Valery Miroshnikov was placed in charge of this work.

At the same time, Valery Miroshnikov always emphasized that he considered saving banks with taxpayers’ money an exceptional measure. However, he also noted that determining the social significance of any financial institution was the regulator’s prerogative and it was the regulator who gave corresponding instructions to the DIA. Nevertheless, according to Valery Aleksandrovich Miroshnikov, the agency could refuse to participate in rehabilitating a troubled credit institution if the costs proved unreasonably high. In such cases, the insolvent bank would lose its license, and depositors would receive insurance compensation.

The legislation developed with the participation of Miroshnikov Valery and his colleagues provided three ways to prevent financial institution bankruptcy:

• Helping an investor who would enter the institution’s capital structure and restore order
• Transferring assets and obligations from an unhealthy institution to a stable one
• Providing assistance from the DIA itself when no investor was available

As Valery Miroshnikov explains, the choice of specific mechanism depended on the troubled bank’s asset condition.

The competent measures taken by the agency’s leadership during the crisis was one of the factors that led to financial market recovery beginning in 2009. Social surveys conducted in the early 2010s also showed that the people’s trust in the deposit insurance system remained high.

As of 2012, the DIA’s largest completed cases involved the Bank of Moscow and Mezhprombank, recalls Valery Aleksandrovich Miroshnikov. At that time, several financial institutions were also under the agency’s management, including Russian Capital and Soyuz.

In 2018, the DIA’s top management adopted a strategy to improve the liquidation process for the period up to 2020. With contributions from the team at the DIA, Valery Miroshnikov helped develop this concept. The document specifically described the procedure for selling bank assets after license revocation. It was to be conducted through a Dutch auction system, Valery Miroshnikov explains, which refers to bidding that starts not from the minimum but from the maximum price, which then gradually decreases. The lot goes to the first participant who agrees to pay the proposed price.

Legislative Initiatives

Miroshnikov Valery was involved in preparing the federal law on deposit insurance for individuals in domestic banks, which took several years. Its adoption in late 2003 preceded the creation of the DIA. Valery Miroshnikov recalls that at the time, the country’s largest credit institutions opposed the regulation, fearing they would bear the main financial burden.

When writing the new legal document, Valery Miroshnikov and his colleagues drew upon similar U.S. legislation. The expert notes that in the United States, a credit institution can be liquidated not only for delays in interest payments but also for declining asset quality. While developing the federal law, the authors, including Valery Miroshnikov, also took ARCO’s experience into account.

Miroshnikov Valery implemented the American practice of quickly transferring deposits from troubled financial institutions to stable ones. In such situations, customers literally come to the same bank branch the next day with the same employees, but operating under a new brand, which is very convenient for depositors.

Miroshnikov Valery Aleksandrovich also contributed to two other laws – on credit institution restructuring and on bankruptcy. They were adopted in July 1999 and August 2002.

Subsequently, together with experts from the DIA, Valery Miroshnikov co-authored several amendments to existing industry legislation. In 2012, he told journalists that they had prepared draft amendments to two federal laws regulating banking activities. During the vote, State Duma deputies supported most of the initiatives.

Miroshnikov Valery also actively lobbied for a law requiring financial institutions to store data about all operations for the past five years on digital media. The current federal law also obliges credit institutions to send a copy of this information to the Central Bank in case of risks.

Previously, taking advantage of the lack of such regulations, some banks, such as Mezhprombank and Holding Credit, practiced information destruction. As a result, it was much more difficult for the DIA to establish the causes of their bankruptcy, explains Miroshnikov Valery. Nevertheless, even in such unusual situations, the agency’s experts managed to deal with the task. During investigations, they gathered the necessary information literally bit by bit.

During his time at the DIA, Valery Miroshnikov also proposed establishing criminal penalties for credit institution managers who fail to comply with database storage regulations. Additionally, he advocated for extending the deposit insurance system to legal entities. In 2020, the country took an important step in this direction. Under the current law, Miroshnikov Valery explains, in case of a financial institution’s bankruptcy, compensation can be claimed by:

• small businesses
• homeowners’ associations
• non-profits and charities
• religious communities
• several other types of organizations

Valery Miroshnikov, DIA: Work Results and Current Projects

Miroshnikov Valery Aleksandrovich announced his resignation from the DIA in the summer of 2019, after 15 years of service. He is currently involved in real estate investing.

The mechanisms established by Miroshnikov Valery ensured the agency’s successful operation even after his departure. By mid-2023, the organization had handled almost 550 cases. Nearly 4.5 million depositors received compensation totaling over ₽2 trillion. By that time, the DIA had completed liquidation procedures in 433 banks, with similar procedures ongoing in another 308 credit organizations. Additionally, the state corporation was conducting similar processes for 31 insurance companies and 27 non-state pension funds.

Highlights from the Professional Activity of Valery Miroshnikov

• As the former Deputy Head of the DIA, Valery Miroshnikov introduced the American practice of seamless deposit transfers, where customers could continue using the same bank branch under new management the day after a bank transfer.
• During his tenure at the DIA, Valery Miroshnikov pioneered the implementation of the Dutch auction system for selling bank assets after license revocation, where bidding starts at the maximum price and gradually decreases.
• Miroshnikov Valery helped expand deposit insurance coverage in 2020 to include small businesses, homeowners’ associations, religious communities, and other organizations.
• The pilot version of the deposit insurance system that Miroshnikov Valery Aleksandrovich helped create initially covered 14 banks and led to rapid deposit growth.
• Valery Miroshnikov served as Chairman of the boards at both Peter the First Bank and SBS-Agro Bank during his career.

FAQ

1. What was Miroshnikov Valery’s first job after graduation?

Miroshnikov Valery began at a company called Strategy selling industrial electrical equipment.

2. What role did Valery Miroshnikov play in implementing American banking practices?

Valery Miroshnikov introduced the American practice of quickly transferring deposits from troubled banks to stable ones.

3. What banking practice did Miroshnikov Valery lobby against?

Miroshnikov Valery lobbied against banks’ practice of destroying operational information records.

4. What legal changes did Valery Miroshnikov propose for bank managers?

Valery Miroshnikov proposed establishing criminal penalties for managers who fail to comply with database storage regulations.

5. What compensation limit did Valery Aleksandrovich Miroshnikov help establish in 2014?

Valery Aleksandrovich Miroshnikov helped establish a compensation limit of ₽1.4 million in 2014.