September 14, 2017 / 10:39 AM / a year ago

Credit Bank of Moscow joins Russian systemically important lenders

MOSCOW (Reuters) - Russia’s central bank has added Credit Bank of Moscow to its list of systemically important banks (SIBs), meaning the lender may now count on receiving irrevocable credit lines from the regulator and state support if it runs into trouble.

The logo of Credit Bank of Moscow is on display outside its branch in Moscow, Russia, June 7, 2016. REUTERS/Sergei Karpukhin

Privately owned Credit Bank of Moscow is Russia’s ninth-largest lender by assets. It expands the group of SIBs to 11.

Those in the group face tighter demands on their short-term liquidity and additional requirements for capital adequacy from the central bank.

The central bank took control of Otkritie, Russia’s biggest private bank by assets, last month after discovering a hole in its balance sheet that could be up to $6.9 billion. That constitutes Russia’s biggest bank bailout.

Credit Bank of Moscow has said it sees no risk for itself from Otkritie’s troubles.

Central bank head Elvira Nabiullina said last week that the regulator would intervene if it saw problems in any SIB.

“The instrument that was recently created - the fund for banking sector consolidation - allows us to terminate problems even at large banks without negative problems for the banking sector,” she said at the time.

The central bank is conducting the financial rehabilitation of Otkritie through this fund.

Reporting by Elena Fabrichnaya; Writing by Dmitry Solovyov; Editing by Dale Hudson

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