The Bank of Russia will direct 24.3 billion rubles to buy out the troubled assets of the Moscow Industrial Bank (Minbank) by the Trust Bank, which may later be merged with the state-owned Promsvyazbank (PSB). This was reported on the regulator’s website.
The Central Bank has already approved changes to the plans for the reorganization of the Ministry of Bank and “Trust”. As a result, the Trust will receive new bad assets by August 1 of this year. Both credit institutions went through the rehabilitation procedure and now belong to the Central Bank, but on the basis of the Trust, a bank of non-core assets was created, which works with the problem debts of other sanitized financial institutions. This includes the “bad” debts of PSB, Otkritie, B&N Bank and others.
The money received by the Minbank will be used to repay the deposit of 22.4 billion rubles, previously taken from the Central Bank. They should be handed over to a credit institution in July, the Bank of Russia said on April 29.
The Minbank will continue to work in a standard mode and fulfill all obligations to customers, then 100% of its shares will be transferred to the defense PSB through the Federal Property Management Agency.
Initially, Trust received more than 2 trillion rubles worth of distressed and non-core assets in 2017 from Otkritie, B&N Bank, Promsvyazbank and their subsidiaries. In general, he must return to the Central Bank 482 billion rubles of this amount by 2023.
In total, about 50 banks were sanitized in Russia. The largest of them are Otkritie, Promsyazbank, B&N Bank, Trust, Asia-Pacific Bank and Minbank. Since 2017, when the Central Bank began to heal troubled credit institutions through the Banking Sector Consolidation Fund, the assets being rehabilitated amounted to 7 trillion rubles, and the losses of the Central Bank – up to 1.4 trillion rubles.