UPDATE 2: Owner says in active talks on B&N Bank bailout with cbank

(Rewrites story, adds details)

MOSCOW, Sep 20 (PRIME) -- Co-owner of Russia’s 11th largest bank B&N Bank Mikail Shishkhanov said on Wednesday that the bank is in active negotiations on its bailout with the central bank and admitted that the bank did not cope with troubles of its affiliates Rost Bank and MDM Bank, as cited in a statement of the bank.

“We are at a stage of active negotiations with the Central Bank of Russia now. Our goal is to complete an effective financial recovery of B&N Bank and Rost Bank with the help of the central bank and with the banking sector consolidation fund. This is the best option which fully guarantees fulfillment of interests of all clients of B&N Bank, including each depositor,” Shishkhanov said.

“I have miscalculated the business power before: the issues of Rost Bank which we bailed out and of MDM Bank were significantly more serious than we assumed in the conditions of a falling market and the economic situation that we saw,” Shishkhanov said.

The board of directors of the bank will meet on Wednesday to discuss reelection of the chairman, the bank said in a statement. Current Chairman of the board Mikhail Gusteriyev was elected in February 2017. According to Shishkhanov, he will chair the board.

A spokesperson for the central bank told PRIME earlier on Wednesday that the owner of B&N Bank had asked the central bank to consider launching bailout procedures at the bank, and the authority will decide on the issue soon.

“The owner of B&N Bank has asked the Central Bank of Russia to consider a possibility of bailout via the fund for the banking sector consolidation,” the spokesperson said.

Earlier on Wednesday, business daily Vedomosti reported that the central bank is likely to announce appointment of an interim administration at B&N Bank and acquisition of the bank by the banking sector consolidation fund for bailout on Thursday.

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