5 banks in Rus­sia see out­flows from cor­po­rate ac­counts

The Pak Banker - - FRONT PAGE - -REUTERS

MOSCOW: Rus­sian house­holds re­tained faith in the coun­try's largest banks in Novem­ber, while com­pa­nies with­drew funds from banks res­cued by the cen­tral bank, ac­cord­ing to an anal­y­sis of the cen­tral bank data.

Banks' fi­nan­cial health is on the radar as the cen­tral bank pro­ceeds with its clean-up pro­gram. The cen­tral bank took over three ma­jor pri­vate lenders, Otkri­tie OFCB.MM, B&N Bank and Promsvyazbank (PSB), in re­cent months.

The Rus­sian bank­ing sec­tor also re­mains un­der scru­tiny as banks that are not res­cued by the cen­tral bank lose their li­censes. Since the be­gin­ning of the year, the cen­tral bank has re­voked 62 bank­ing li­censes, re­duc­ing the num­ber of banks in Rus­sia to 519 from more than 1,000 a few years ago. In Novem­ber, Otkri­tie, once Rus­sia's largest pri­vate lender, lost 101.2 bil­lion rou­bles ($1.75 bil­lion), or 25 per­cent of cor­po­rate funds it held in cur­rent and de­posit ac­counts, ac­cord­ing to data col­lated by Reuters us­ing web-based ag­gre­ga­tor kuap.ru, a fi­nan­cial an­a­lyt­i­cal tool used by Rus­sian credit an­a­lysts.

Otkri­tie said in an emailed com­ment the drop was at­trib­uted to a write-off of its sub­or­di­nated bonds, re­quired by the cen­tral bank's bail-out pro­gram. B&N, which was bailed out within a month af­ter Otkri­tie, saw its cor­po­rate funds shrink by 19 bil­lion rou­bles, or 16 per­cent in Novem­ber, the data showed. B&N said the de­cline was due to ex­pi­ra­tion of some cor­po­rate time de­posits. Credit Bank of Moscow (MCB) fol­lowed with a drop of 4.9 per­cent in cor­po­rate cur­rent and de­posit ac­counts in Novem­ber. CBM said it saw an out­flow as it has not raised de­posit rates un­like other banks that sought liq­uid­ity from cor­po­rate clients.

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