Financial Sector Overview slide image

Financial Sector Overview

Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation BANKING SECTOR: NEW RESOLUTION MECHANISM Under new mechanism both costs of resolution and time required have been reduced significantly 24 24 RUB 2.6 tn have been provided to three banking groups (Otkritie, B&N, Promsvyazbank) RUB 758.3 bn for additional capitalization RUB 1.86 tn List of banks under financial rehabilitation procedure 1 Bank FC Otkritie (merged with B&N Bank) 2 Promsvyazbank 4 National Bank TRUST (with ROST Bank and AVB Bank) Asian-Pacific Bank (APB) 5 for liquidity (deposits) * Moscow Industrial Bank (MIB) 6 Volga-Oka Bank (VOCBANK) + Additional RUB 379.1 bn RUB 156.1 bn for the establishment of BNA** RUB 42.7 bn for additional capitalization of Otkritie Bank RUB 9.0 bn for additional c apitalization of APB RUB 128.7 bn for additional capitalization for MIB and RUB 39.9 bn for liquidity (deposits) RUB 2.7 bn for additional capitalization for VOCBANK * Have been fully repaid by the end of 2018 **BNA - Bank of non-core assets based on NB TRUST, ROST BANK and Bank AVB On July 2, 2019, the Bank of Russia's Board of Directors has decided to complete the implementation of bankruptcy prevention measures for Bank FC Otkritie. Currently, the Bank complies with all Bank of Russia's statutory requirements for financial resilience and creditworthiness. Promsvyazbank complies with all capital adequacy and liquidity requirements and operates its business in its usual way. The bank fully repaid CBR deposits placed in the bank during resolution process. As a result of the financial resolution measures and implementation of a new business model in the Asian-Pacific Bank, its financial standing has been stabilised, new capital has been formed, outflow of its clients' funds has been stopped, its solvency has been restored and the Bank's profitability has become stable. The Bank is supposed to be sold in 2020 after it discloses information about its 2019 performance to the public, including potential investors. On 12 July 2019, the Bank of Russia approved amendments to the plan of its participation in bankruptcy prevention measures for the Moscow Industrial bank (MIB). These amendments provide for the Bank of Russia to allocate 128.7 billion rubles for recapitalisation purposes.
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