Promsvjazbanka trusted to «hold the Fort»

© RIA Novosti / Vitaly to Belowaverage in photobacteria Promsvyazbank in Moscow. Archival photoPromsvjazbanka trusted to «hold the Fort»© RIA Novosti / Vitaly to Belowaverage the image Bank

The government and the Bank of Russia determined the further fate of the reorganized forces of the regulator PSB: on its basis will create a reference Bank for operations for defense procurement and major government contracts. According to analysts, in the end, the PSB may be under sanctions, but will reduce the risks for others.

The idea of establishing a specialized Bank arose after the signing by the President of the United States Donald trump of the law «On combating the enemies of America through sanctions» in August last year. The document, in particular, provided for the imposition of sanctions on persons who cooperate with the defense sector of the Russian Federation.

That the government has decided to create specialized banks, the Finance Ministry said on Thursday, January 18. The Agency noted that such a Bank will provide banking support, calculations by defense contracts and big government contracts and loans to defense enterprises. As of 19 January, the Minister of Finance Anton Siluanov revealed the name of the Bank. The head of the PSB as a reference Bank, will become CEO of the Russian export centre (REC) Petr Fradkov.

A number of analysts, including experts and Fitch ACRES, called the highly probable introduction of sanctions against PSB for the service of the state defense order. However, as noted by the former Deputy Minister of Finance of the Russian Federation, Professor of the faculty of Economics Oleg Vyugin, specialized banks, they are not terrible, because it will work only with rubles in the country.

Currently, PSB, chosen as the reference Bank for the service of the state defense order, is in the process of rehabilitation through controlled Bank Fund consolidation of the banking sector. Previously there were versions that it can combine also with a rehabilitated «FC Opening» and Binbank.

Among the contenders for the role of specialized banks was called the structure of Rostec — the Russian financial Corporation, and «daughter» VEB — Globex and Svyaz-Bank.

However, the government and the Central Bank agreed that the best for this role in terms of size, the presence of an extensive network of offices and several other characteristics will be PSB. In the property of the Russian Federation, the Bank will be transferred during the first quarter of 2018, then he will capitalize. The Central Bank noted that the PSB will carry out banking support of the state defense order at the same time with the usual operations.

According to the calculations of the chief of analytical management of BKF Bank Maxim Osadchy, the amount of recapitalization of PSB before the creation on its basis of specialized banks could reach 200-300 billion rubles. In December last year, the Chairman of the Central Bank Vasily Pozdyshev has estimated the capitalization of the Bank at 100-200 billion.

The head of the Association of Russian banks Garegin Tosunyan believes that the reorganization of the Bank under the specialized banks will take place during 2018.

Business Bank

PSB was founded in 1995 and is among the systemically important credit institutions of the Russian Federation. According to RIA Rating, on December 1, 2017, he held the 10-th place among Russian banks with assets of $ 1,378 billion rubles.

Currently PSB is a universal commercial Bank, the main activities are the provision of services to individuals and corporate customers service small and medium businesses, as well as providing investment banking and financial services.

According to information on the website of the Bank, its clients are more than 160 thousand Russian enterprises, and the number of retail customers reaches 2.3 million people. The regional network of Promsvyazbank totals more than 300 offices and over 10 thousand ATMs and 200 terminals around the country. The Bank’s products and services are represented in most regions, covering approximately 88% of Russia’s population. Promsvyazbank also has office in Cyprus and a representative office in China.

Fradkov earlier on Friday said that already takes an active part in the work on preparation of regulatory framework for specialized banks and the creation of conditions for financial-credit support of enterprises OPK. In his opinion, the PSB has significant credit portfolio, good experience in industry, including defense enterprises, as well as experience working with companies of small and medium businesses, and deal with assigned tasks.

© RIA Novosti / Vitaly to Belowaverage in fotobounce one of the branches of Promsvyazbank in MoscowPromsvjazbanka trusted to «hold the Fort»© RIA Novosti / Vitaly to Belowaverage in fotobounce one of the branches of Promsvyazbank in Moscow