August 27, 2015 / 9:32 AM / 4 years ago

Russia puts top-60 bank Investtorgbank under temporary administration

MOSCOW, Aug 27 (Reuters) - Russia’s central bank on Thursday appointed the state corporation Deposit Insurance Agency (DIA) as a temporary administrator of top-60 bank Investtorgbank.

It said in a statement on its website that the DIA had become temporary administrator of Investtorgbank and VOKBANK, part of banking group ITB Holding, as of Thursday.

The administrator’s functions would include investigating the bank’s financial condition and deciding optimal measures for defending the interests of creditors and depositors.

The statement also said that the move was in accordance with the federal law on bankruptcy.

The central bank under the leadership of Governor Elvira Nabiullina has launched a clean-up of the banking sector to remove weak players from the market.

It has removed over 150 banking licences since Nabiullina became central bank governor, but Russia’s banking sector still remains overcrowded with around 730 functioning banks. (Reporting by Alexander Winning and Oksana Kobzeva, editing by Jason Bush)

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