B&N bank seeks bailout from Bank of Russia

 20 Sep 2017 - 22:47

AFP

Moscow:  B&N Bank, Russia’s 12th biggest lender by assets, yesterday asked the central bank for a bailout, less than a month after another major Russian bank had to be rescued.
“The owner of B&N Bank has asked the Bank of Russia to consider the possibility of a rescue of the bank,” the central bank said in a statement.
“We will make a decision on this issue in the near future,” it added.
B&N Bank, known locally as Binbank, was founded in 1993 and is part of the Safmar Group that also includes oil and property companies and is controlled by tycoon Mikhail Gutseriyev and his family.
B&N Bank said Mikhail Shishkhanov, a co-owner of the bank, would once again head the lender’s board of directors and together with the central bank work on a bailout package.
“We are currently in active negotiations with the Central Bank of Russia,” he was quoted as saying.
“I fully agree with the position of the Central Bank of Russia, one of whose most important tasks is to support the stability of the Russian financial market.”
Shishkhanov stepped down as bank chairman in May, asking Gutseriyev, who is his uncle, to take over.
In late August, the central bank had to step in to save the country’s eighth largest lender, Otkritie, amid fears over its stability following a sharp drop in customer deposits in recent months.
Speaking about Otkritie’s bailout last week, the head of Russia’s central bank Elvira Nabiullina said “it is necessary to draw conclusions and change our approach in such a way, to minimise the likelihood of such instances repeating.”