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Two Russian banks in talks with central bank on their capital- Fitch
November 17, 2017 / 10:01 AM / 25 days ago

Two Russian banks in talks with central bank on their capital- Fitch

MOSCOW, Nov 17 (Reuters) - Two Russian regional banks are in talks with the country’s central bank about how to bolster their capital, according to a report by Fitch credit rating agency.

Russia’s banking industry is under increased scrutiny after two major private banks, Otkritie Bank & B&N Bank, had to seek bailouts from the central bank earlier this year.

Fitch Ratings said in a note released on Thursday that Asian-Pacific Bank, known as APB, and Uraltransbank, or UTB, had a weak capital position.

“Fitch understands that both banks have agreed capital rectification plans with the Central Bank of Russia, with certain milestones to be achieved within the next several months, while their inability to meet these targets may result in regulatory intervention,” Fitch said in an English language report.

“However, the (banks’ credit) ratings also reflect the fact that both banks are currently servicing their obligations and have reasonable liquidity cushions (larger at UTB),” Fitch said, retaining CCC credit rating for the two banks.

Fitch did not specify what sort financial rehabilitation had been discussed with the central bank.

APB, one of Russia’s largest lenders in Siberia and the Far East and which is ranked number 56 in the country by assets, did not immediately respond to a request to comment.

UTB, which ranks as Russia’s No. 197 biggest bank, has its headquarters in the Ural city of Yekaterinburg. UTB also could not immediately be reached for comment.

The central bank, which does not usually comment on operating banks, did not immediately respond to a Reuters request for comment on the Fitch report. (Reporting by Andrey Ostroukh; Editing by Katya Golubkova and Jane Merriman)

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