Moody’s: Finding buyer for Otkritie, B&N Bank challenge for cbank

MOSCOW, Feb 21 (PRIME) -- Finding a buyer for Otkritie Financial Corporation (FC) Bank and B&N Bank which are undergoing bailout, will be a challenge for Russia’s central bank, global rating agency Moody’s said in a research note on Wednesday.

Earlier in February, Central Bank Chairwoman Elvira Nabiullina said that a decision to merge the banks had been made.

The sale will be difficult because to its big size and a weak investor interest in Russian banking capital. If it is not sold to a private investor or a state-run bank, Otkritie Financial Corporation (FC) Bank plus B&N Bank may become another state Russian bank, the agency said.

Moody’s also said that Promsvyazbank which is to become a bank meant to service the defense order and large government contracts may face U.S. sanctions.

It also said that the three banks will have difficulties with improving their financial results in the next 12-18 months although their net interest margin figures may rise thanks to the central bank’s support.

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