Russia's central bank reveals money spent to bail out three banks

Russia's central bank reveals money spent to bail out three banks

Russia's central bank, which has spent over $40 billion to bail out three banks in the past year, would like to take control of the assets of the owners of banks it has had or will have to rescue, Governor Elvira Nabiullina said.

She said that the central bank took over Otkritie, B&N and Promsvyazbank via bailouts last year, through a specially created fund. So far, it has recovered around 100 billion rubles in assets from their former owners.

Nabiullina said the central bank injected 758.3 billion rubles to boost the capital of the three banks, while another 1.86 trillion rubles was provided in deposits.

According to her, these figures were likely to be final and the central bank was only considering providing additional liquidity for a yet-to-be-created non-core asset bank, which will take over the non-core and bad assets of the banks that have been bailed out.

"If the controlling shareholder has brought the bank to the situation where its license is to be withdrawn or the state is forced to spend funds on a bailout, then the (former) owner should be responsible with all their assets," she said.

"Of course, this would concern also the owners of the banks already taken over in bailouts. In that regard, we expect to receive the assets we did not yet receive - including financial ones," Reuters cited her as saying.

Nabiullina added that the Russian banking sector is forecast to post a profit of around 1.5 trillion rubles this year.

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