The Bank of Russia has put Promsvyazbank Public Joint-Stock Company, the country’s 9th largest lender by assets, under temporary administration. This is the third such move by the Russian central bank this year.
Promsvyazbank, considered a systemically important institution, has offices in all federal districts and 2.73 million clients. The bank managed RUB1.3 trillion ($22.1bn) in assets as at 1 December 2017.
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The central bank said that it will become Promsvyazbank’s key investor and will provide funds to support Promsvyazbank‘s liquidity. The investment will be funded by the Banking Sector Consolidation Fund, though no investment details were disclosed.
The central bank said that it will not place a moratorium on creditors’ demands or impose a bail-in option.
“The Bank will continue to operate in the ordinary course, meeting its obligations and conducting further transactions,” the central bank said.
In August 2017, the Bank of Russia decided to bail-out Bank Otkritie Financial (Otkritie) that was facing a deposit run, followed by a bail-out of B&N Bank the next month.
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