PRESS: Cbank orders Asian-Pacific Bk to change owners, up capital

MOSCOW, Mar 23 (PRIME) -- The central bank has asked Asian-Pacific Bank, Russia’s 60th largest bank by assets as of February 1, to change shareholders, the largest of which is former owner of retailer Azbuka Vkusa Andrei Vdovin, and to raise its shareholder equity before April, Vedomosti business daily reported on Friday citing sources.

Previously, the central bank allowed Asian-Pacific Bank to delay provision of reserves against a loan provided to defunct subsidiary M2M Private Bank to the beginning of 2018, but the bank created reserves only against 80% of the loan. Asian-Pacific Bank asked for more time, and the regulator set the deadline for March 31, two sources told Vedomosti.

The reserves will also force the bank to raise capital in line with the central bank’s orders.

After the failure of M2M Private Bank, the regulator ordered owners of Asian-Pacific Bank to cut their stakes in the bank to no more than 10%. Previously, Vdovin, Alexei Maslovsky, and Peter Hambro owned 22.5% in the bank each, but in December 2017 they cut their stakes to a combined stake of 8.24% controlled through company PPFIN Region, while British Virgin Islands–registered company Shelmer Holding Ltd acquired 31.8% in the bank.

Shelmer Holding Ltd is owned by Maxim Chernavin, who was previously listed as an expert at Latvia’s Bank M2M Europe controlled by Vdovin. In September 2017, Vdovin sold the bank, the business daily reported.

A source familiar with employees of the central bank told Vedomosti that the regulator wants a “new face” to become a shareholder of Asia-Pacific Bank and to raise its capital. The bank fruitlessly looked for an investor throughout 2017, Vedomosti reported.

Vdovin said he was unaware of the situation and redirected the request for comment to Asia-Pacific Bank’s President Andrei Novikov. Novikov said that he was not allowed to comment on restricted documents, but added that the bank had violated no rulings of the central bank.

A source close to Asia-Pacific Bank said that the bank is able to create reserves against losses on M2M Private Bank, but that it may be only the beginning, as the central bank is now inspecting the condition of the bank, which is to be completed in April.

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