PRESS: VTB 24 CEO says some Russian large banks in tough spot

MOSCOW, Sep 27 (PRIME) -- There are several large banks that are in a tough spot now, Mikhail Zadornov, CEO of second largest bank of the country VTB’s retail arm VTB 24, said in an interview to Vedomosti business daily published on Wednesday.

On September 21, the central bank decided to bail out Russia’s 11th largest bank B&N Bank and its affiliate Rost Bank using the money of the fund for consolidation of the banking sector. It was the second time the bank had used the fund for a bailout after it had launched a financial recovery procedure in Otkritie Financial Corporation (FC) Bank in late August.

“Two years ago I said that there are banks among the top-35 that will not survive. Just like (Nikolai) Gogol said: the wheel will not make it to Kazan…It was clear two and even three years ago that there are banks among the 15 largest banks with difficulties,” Zadornov said when asked whether other large banks may be bailed out by the fund. “There are other large troubled banks.”

Zadornov is to become the CEO of Otkritie FC Bank after the regulator’s interim administration finishes its work there.

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