PRESS: Russia’s Tatfondbank may merge with AK BARS Bank

MOSCOW, Dec 13 (PRIME) -- Tatfondbank, Russia’s 42nd largest bank by assets as of October 1, may be saved through a merger AK BARS bank controlled by the Tatarstan republic, Vedomosti business daily reported on Tuesday.

On December 7, Tatfondbank said Tatarstan is holding talks with the central bank on financial recovery of the bank, and a merger with AK BARS Bank is one of the options. The Deposit Insurance Agency supported the idea. It will be easier for the region to manage capital of one bank than two banks, and it will simplify competition with larger banks, a source close to the board of directors of Tatfondbank, told the business daily.

An AK BARS Bank representative told Vedomosti that a merger or a bailout of Tatfondbank is not on the agenda, while Tatfondbank and the central bank declined to comment. A representative for the president of Tatarstan said that the region is developing all possible options to support the bank.

Sources also told Vedomosti that businessman Vladimir Kogan, who managed the bailout of UralSib Bank, is interested in Tatfondbank. But Kogan’s representative Irina Volina said she is unaware of that, refused to pass questions to Kogan and denied his interest in the possible bailout.

On Monday, Tatfondbank said in a statement the bank registered higher demand for an early repayment of deposits in the wake of media reports on a possible bailout, and introduced a 15,000 ruble daily limit on cash withdrawals from ATMs and a 50,000 ruble limit for a one-time withdrawal from bank tills.

(61.5804 rubles – U.S. $1)

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