UPDATE: Central bank worries about higher state control over banks - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

UPDATE: Central bank worries about higher state control over banks

(Adds paragraphs 5-7)

RECREATION HOUSE BOR, Moscow Region, Feb 2 (PRIME) -- The central bank is concerned with high state control over RussiaТs banking sector and the regulator is interested in selling off bailed-out banks as soon as possible, Chairwoman Elvira Nabiullina said on Friday.

УOf course, we are worried about a relatively large state share in the banking sector. That is why we intend to sell the banks, which we are currently bailing out, on the market as soon as possible on condition that their business models are effective,Ф she said. УGenerally, we are not interested in expansion of the state.Ф

She said that the central bank has not discussed the sale of Vozrozhdenie Bank to VTB.

According to media reports, the central bank had requested that the Ananyev brothers, ex-beneficiary owners of Promsvyazbank, sell a controlling stake in Vozrozhdenie Bank until the middle of February. VTB CEO Andrei Kostin said that the bank could consider the purchase of Vozrozhdenie Bank.

Nabiullina said that arrest of a 36.31% stake in Vozrozhdenie Bank will not prevent a sale of its controlling stake.

УI do not think that this will in any way impede the sale and purchase of the shares,Ф she said. УAs far as I know, there are a lot of interested parties.Ф

The Moscow Arbitration Court arrested the shares on January 21 on request from Promsvyazbank as part of its suit to NetherlandТs Promsvyaz Capital B.V. owned by former Promsvyazbank owners Dmitry and Alexei Ananyev and 9 more firms. Promsvyazbank wants to null deals with securities of the bank and companies linked with it, which Promsvyaz Capital B.V., sold to the bank on December 14, 2017, a day before the central bank announced its bailout and imposed a temporary administration.

Nabiullina said the central bank will merge healthy assets of B&N Bank and Otkritie Financial Corporation (FC) Bank, which are undergoing bailouts.

УA decision that Otkritie (FC Bank) and B&N Bank, save for, maybe a share of bad assets, will be merged, such an internal decision has been made,Ф Nabiullina said, adding that the idea to create a bank for bad debts to spin off poor assets of Otkritie FC Bank is difficult to fulfill but is being discussed.

Bailouts of the banks, as well as RussiaТs 10th largest bank Promsvyazbank, started in 2017.

The central bank will not adjust the volume of capital injections in Promsvyazbank, set at 100Ц200 billion rubles, after deciding to convert it into a bank for the state defense order.

УWe will decide to raise capital of the bank on general terms, like we did in previous cases,Ф she said.

(56.2613 rubles Ц U.S. $1)

End

02.02.2018 16:15
 
 
Share |
To report an error select text and press Ctrl+Enter
 
 
Central Bank Official Rate
1W 1M 1Y
USD
EUR 76.7556 +0.6819 15 nov
USD 67.9975 +0.3163 15 nov
Stock Market Indices
1D 1W 1M 1Y
MICEX
rtsi 1117.26 +1.56 18:50 14 nov
micex 2378.59 +0.15 18:50 14 nov
Stock Quotes in RUR
1D 1W 1M 1Y
GAZP
gazp 151.85 +2.03 18:49 14 nov
lkoh 4856.50 -2.08 18:47 14 nov
rosn 427.15 -3.71 18:49 14 nov
sber 199.20 +1.34 18:49 14 nov
MICEX Ruble Trading
1D 1W 1M 1Y
USDTD
EURTD 76.4400 +0.2375 14:59 14 nov
USDTD 67.0600 -0.6350 17:44 14 nov