Russia central bank considering rescue of B&N Bank

Russia’s central bank says it is considering rescuing B&N Bank, one of the country’s largest private lenders, from what would be the second collapse of a top bank in three weeks.

The central bank told the Financial Times on Wednesday that Mikhail Gutseriev, the oligarch whose Safmar Group owns B&N Bank, had asked it to rescue it through a new fund. “We will take a decision on this issue in the near future,” the central bank said.

B&N Bank, Russia’s 12th largest bank by assets, is one of three top privately held banks highly exposed to Otkritie – Russia’s largest private lender until the central bank rescued it last month – through an informal group known as the “Garden Ring.” The central bank estimates Otkritie may have a balance sheet hole of up to Rbs400bn; senior Russian bankers say the final total may be twice that.

Read more:

Russia steps in to stave off Otkritie collapse (Aug 29)

Otkritie’s fall shows depth of problems in Russia’s banking sector (Aug 31)

Elvira Nabiullina hunts down Russia’s banking ‘banditry’(Oct 2016)

Image source: Getty

Source