VTB Bank CEO: Banks bailed out by cbank may fail to find investors

MOSCOW, Nov 28 (PRIME) -- Otkritie FC Bank and B&N Banks, undergoing bailout procedures launched by the central bank earlier this year, may be unable to find investors after the procedures are done due to the lack of investment capital on the market, CEO of VTB bank Andrei Kostin said on Tuesday.

“Our banking sector has been unhealthy and needed purging. The point is that the creation of banks under control of the central bank primarily opposes logic and laws of the financial market development,” he said.

“A regulator surely cannot and should not be the owner of its banking system. We have had the only exclusion, Sberbank. But now we see a galaxy of banks appearing. Although the central bank says the measure is temporary, I would not be so sure… as investment capital is unlikely to arrive in the banking sector due to a number of restrictions.”

CEO also said that a turnaround manager on the basis of the Deposit Insurance Agency (DIA) would be more preferable than the central bank’s direct participation.

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