Publisher
WPS USA Inc
Media Date
9-1-2017
Media Type
Document
Content Type
News Article
Country/Region
Russia
Language
English
Crisis
Russian Private-Banking Crisis (2017)
Case Series
Ad hoc Capital Injection
Intervention
Ad hoc Capital Injection
Additional Information
The Bank of Russia announced the financial recovery of Bank Otkritie FC, part of Otkritie Financial Corporation controlled by businessman Vadim Belyaev, on August 29 in the evening. This will be the first recovery in a new manner: through the banking sector consolidation fund (BSCF) established by the Bank of Russia, the regulator said in a press release. So, the Bank of Russia will be responsible for the financial recovery. Temporary administration was imposed in Bank Otkritie FC. This administration is composed of the employees of the Bank of Russia and a management company of the BSCF. The bank's shares the Bank of Russia will acquire as a new shareholder and a turnaround manager will be transferred to and managed by this management company. The regulator will hold at least 75% of shares, the Bank of Russia specified. Up to 25% of shares will remain with the existing shareholders unless the temporary administration reveals that the bank's capital is negative.
Recommended Citation
WPS, "Bank Otkritie FC is the first lender whose financial recovery is the Bank of Russia's responsibility. Previously, the Bank of Russia was among shareholders of only Sberbank and was not allowed to own any other banks. With the establishment of the banking sector consolidation fund, the Bank of Russia can become a reliable shareholder for an unlimited number of credit institutions" (2017). Documents. 2700.
https://elischolar.library.yale.edu/ypfs-documents2/2700