The Central Bank last fall knew about the problems at the Bank «Opening»

© Photo : account Bank Open on FacebookОфис Bank’s Opening in Moscow. Archive photoThe Central Bank last fall knew about the problems at the Bank «Opening»© Photo : account Bank «Opening» on Facebook

Problems in the Bank «FC Opening» associated with the overstatement of capital and high risks, was known to CBR last fall, told reporters at a briefing first Deputy Chairman of Bank of Russia Dmitry Tulin.

According to tulina, that the activities of the «FC Opening» is associated with increased risk and in need of serious changes, including the possible application of measures for financial rehabilitation, management and staff of banking supervision knew for a long time.

«We are on the level of professional judgment — here in CB — how long ago identified the main problems of the Bank, in the autumn of last year, the potential solutions to these problems and related to the process risks. In any case we were going to achieve from the management of the Bank, its owners or recapitalization of the Bank, or reduction in the volume of operations to become an adequate amount of capital,» said Tulin.

Medvedev recalled that a group of «Opening» in recent years, very rapidly growing in all indicators, including through mergers and acquisitions, and this process was financed by borrowed funds, when main risks the Bank has assumed. «The capital of the Bank was, obviously, clearly insufficient compared to the volume of transactions and the amount of risk. The capital of the Bank, published in the official financial statements, apparently, were significantly overstated in comparison with its real value,» added Tulin.

He also noted that the Central Bank estimated the probability of application of measures of financial recovery as sufficiently high. «We knew that achieve the same goal, i.e. making money in the capital and other purpose — reduction of volumes of operations at the working of the Bank is a very difficult task and performing these tasks, the Bank would be faced with a large objective difficulties,» said Tulin.

He said that for such a large Bank credit scheme of rehabilitation could not be acceptable «though, because of sanator is not there to cope with this task». «I’m in the autumn of last year believed that it would take us 12 to 18 months to … (come – ed.) to this event financial recovery,» acknowledged Tulin.

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