Page 85 - RusRPTFeb19

Total capital.
8.1.8 Bank news
The Central Bank of Russia (CBR) has put the bailed Asian-Pacific Bank (APB) on sale as of March 14 2019 with the starting auction price of RUB9.85bn ($148mn), the regulator said on December 17. The bank makes the first asset up for sale out of the banks that were bailed by the CBR. Notably, the CBR's starting price is lower than the RUB10bn of capital injections granted to APB. In November the number of banks in Russia has fallen below 500 for the first time since the fall of the Soviet Union, as the CBR's campaign to clean up the sector moves into its end game. Last week Russia's Deposit Insurance Agency (DIA) said it will open a Moscow office that will sell the assets of failed Russian banks that came under its control after the clean up. Reportedly DIA will consult both companies and private individuals on potential sales of assets. Currently at torgiasv.ru about 27,000 assets are already up for sale. DIA will also do road shows for the most lucrative assets. The first will be the offer for RUB10bn credit portfolio of former Tatarstan- based Tatfondbank, which will be pitched to representatives of 18 banks.
During the year, Citibank, owned by American Citigroup, plans to close eight Russian branches-- a third of its branches. This was announced by a member of the board, head of directorate for working with private clients of Citibank, Mikhail Berner, reports TASS.
Russia's Promsvyazbank (PSB) will be allowed by the government not to disclose the information on its beneficiaries in full or partially, while other banking and credit institutions are obliged to disclose this information, Kommersant daily reported on December 18. The bank was rescued in 2017 and is under temporary administration of the Central Bank of Russia (CBR). It is slated to receive over RUB240bn ($4bn) in capital injections.
The Russian state will make an additional RUB20bn ($300mn) equity injection into the state-controlled Russian Agricultural Bank Rosselkhozbank, Tass reported on December 6 citing the bank's materials. In 2018 the bank already received RUB20bn of state support in the form of RUB5bn direct subsidies and RUB15 perpetual bonds issued.
The capital of Otkritie Financial Corporation (FC) Bank after its merger with B&N Bank amounts to RUB315bn, one of the largest in the Russian banking system, CEO Mikhail Zadornov said in an interview with Rossiya 24 television channel on Wednesday. “The capital of the united bank – as we have already assessed it – amounts to around RUB315bn, it is one of the largest capitals. It is made of ready cash alone, as we put it. That is why the merged bank meets more than all the requirements,” he said. Zadornov also said that Otkritie FC Bank will rank fourth or fifth by assets among Russian banks. “We will have the ability to grant loans to more largest Russian companies with such capital,” he added. In October, the CEO said that the new Otkritie FC Bank’s assets would reach RUB2.3–2.4 trillion by January 1. Otkritie FC Bank and B&N Bank were bailed out by the central bank from summer 2017. In February 2018, the regulator unveiled its intention to merge the banks aside from their bad and non-core assets. The merger officially finished on January 1, 2019.
Recently revamped Russian development bank Vnesheconombank (VEB) is trying to unload some of the failed banks sitting on its balance sheet as the government begins the process of unwinding positions picked up in the
85 RUSSIA Country Report February 2019 www.intellinews.com