The rescue of drowning: Central Bank money will help keep b & n afloat

© RIA Novosti / Alexei Codecoverage in photobacteria of the Bank in Moscow. Archival photoThe rescue of drowning: Central Bank money will help keep b & n afloat© RIA Novosti / Alexei Codiscovered the image Bank

The owners of b & n Bank Mikhail Gutseriev and Mikail Shishkhanov — during the year I tried, but couldn’t find the way of salvation independently of the Bank. Realizing the scale of the problems, he was forced to seek the assistance of the Bank of Russia, hoping to reorganize through a new Fund the consolidation of the banking sector (VCBS).

B & n on August 1, took 11-th place among Russian banks by size of assets of 1.2 trillion rubles.

CB on Wednesday morning announced that the owner of the Bank was asked to consider the possibility of its recovery through PCBS — the decision on this matter will be made soon. Day the regulator said that lent money to the Bank for liquidity support. Will do b & n the fate of the Bank «FC Opening» has become the first customer PCBS — is unclear, but experts believe that reorganization is inevitable.

According to the Deputy of the state Duma, Chairman of the Council of the Association of banks of Russia Anatoly Aksakov, the Bank is likely to be sanitized under the new arrangement, but after some time.

«The Central Bank has decided to reinforce Bank liquidity to support the Bank in a difficult situation when thanks to the media the Bank has started customer churn. This suggests that the Central Bank will not abandon the credit institution. Accordingly, take a wise decision in order to ensure stability in the financial market and in the organization, in particular,» — said RIA Novosti Aksakov.

The Bank, having the funds of the Central Bank, immediately calmed customers and advised not to withdraw early deposits to avoid losing accrued interest. The Bank assured that the assets of the Central Bank are sufficient to meet all commitments. «In the offices and ATMs of the Bank maintained an adequate cash position. If desired, investors can withdraw their funds,» said the credit organization.

At the moment the group Safmar combines the assets of the Gutseriev family. According to information on the website of the Central Bank, as of June 14, 2017, controlled by the Gutseriev and Shishkhanov shareholders of the Bank amounted to «a group of persons with a total share 96,55715% of the voting shares of the Bank.» According to the report of the Bank and «Samara», with a request for rehabilitation to the Central Bank asked the owner how he is.

He also will chair the Board of Directors of the Bank and with the support of the Central Bank will conduct financial rehabilitation of the Bank and «the Growth of the Bank.»

The August RAID

The outflow of funds of depositors in the Bank began in the summer. So, in August the amount of deposits declined by 22.1 billion. According to RIA rating, the Deposit portfolio of the Bank as of 1 July was 552,9 billion.

The cause of this outflow could be a letter from the Manager of the company «Alfa-capital» Sergey Gavrilov, who pointed out the problems in some of the largest Russian banks. The letter claimed that the situation around the Bank «FC Opening», Binbank, IBC and PSB may be resolved this fall. The situation has received wide publicity in the media and became the subject of inspections by FAS and the Central Bank.

A letter to some extent proved prophetic, as just two weeks, the Central Bank announced the reorganization of the Bank «FC Opening» through Fund consolidation, providing the Bank with funds to maintain the liquidity and capitalization.

It is possible that the funds of the Bank of Russia was granted to the Bank by Deposit, as in the case of the Bank «FC Opening», which attracted the Deposit of the Central Bank in August in the amount of 330 billion rubles to compensate for the outflow of clients ‘ funds, said the head of analytical management of BKF Bank Maxim Osadchy.

In turn, the above-mentioned Gavrilova from «the alpha-the capital» Promsvyazbank and the Moscow credit Bank has assured of steady work and the situation with the problems of the Bank they will not be affected.

It turned out that the owners of the Bank have been negotiating with the Bank for release of the problematic situation for the past year. And the decision to request the controller on reorganization was made after the owners are not found the funds to recapitalize their Bank.

«After the legislative introduction of a mechanism of rehabilitation through the Fund’s consolidation of the banking sector, the owners negotiated with the Bank and preparation for rehabilitation», — stated in a joint press release of the group Safmar and the Bank.

The burden of «Growth-Bank» and MDM Bank

The Bank was an active player in the Russian banking market by acquiring other banks. In recognition shishkhanova, it has become one of the key problems for business banking group.

«Earlier, I didn’t calculate business strength, «the Growth of the Bank», taken to reorganize, and MDM Bank were much more serious than expected in a falling market and the prevailing economic conditions. And I fully share the position of the Central Bank, one of the most important tasks of which is to maintain stability on the Russian financial market», — commented on the situation Shishkhanov.

MDM Bank was the largest asset acquired by the shareholders of the Bank. In November of 2016, took place the merger of the Bank with MDM Bank. United credit organization has retained the license of MDM Bank, continuing the work under the brand of b & n Bank.

A year earlier, in December 2014, the Bank moved for readjustment of banks of group «Growth»: Binbank Smolensk (ex — «SKA-Bank»), «Bin» Surgut (formerly «Akkobank»), «Bin» Tver (former «Tveruniversalbank»), «Growth Bank» and Bank «the Cedar». Later b & n also announced the acquisition of the Yekaterinburg Uralprivatbank. In June 2016, the Bank completed its accession, a regional «daughters».

A major purchase was the former «daughter» of Ukrainian Privat — in April 2014 the Bank acquired Moskomprivatbank, which now operates under the brand «b & n digital».

«You have to understand that b & n is having problems, probably on the basis of its remedial function, the excessive burden which he had assumed in previous years that was done with the consent of the Central Bank. Nothing in this terrible there. The main thing — that customers can be sure that the Bank fulfills the obligations and will fulfil, and that he was not in that condition when ignored the difficulties,» — said the head of the ARB Garegin Tosunyan.

«And I’m sure CB him a hand stretch. Especially when the economic situation is difficult. Life always throws up problems and they are solved in a civilized manner, much better (as amended), than when there is a revocation of the license. And that the Central Bank now took the support of banks is more correct than when you were in the era of mass withdrawals. Certainly the proportion of owners of the Bank in connection with the possible reorganization FCBS significantly reduced,» said Tosunyan.