Cbank says tier-1 capital adequacy ratio of B&N Bank falls

MOSCOW, Nov 23 (PRIME) -- The tier-1 capital adequacy ratio of Russia’s B&N Bank has fallen below the regulatory level, the regulator said in a statement on Thursday.

“The Bank of Russia notifies that B&N Bank reports showed that the tier-1 capital adequacy ratio of the credit organization has fallen below the acceptable level for a total of six operating days over the period of 30 consecutive operating days,” the statement read.

According to a central bank’s ruling, a bank has to start writing off subordinate liabilities if its tier-1 capital adequacy ratio is below 5.125% for more than six consecutive days.

B&N Bank has already violated the regulation previously, and then it led to the bank writing off U.S. $227 million of liabilities to creditors.

B&N Bank is undergoing a bailout procedure launched by the central bank in September.

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