Big Russian bank placed into temporary administration

AFP, MOSCOW: The Russian central bank said it was putting major lender Vneshprombank into temporary administration as the country’s economic woes put pressure on the financial sector.
Citing the lender’s financial difficulties, the central bank said on Friday Vneshprombank had been placed into temporary administration for six months.
According to the Interfax Center for Economic Analysis, Vneshprombank ranked 34th by total assets earlier this year.
Business daily Vedomosti, citing sources, said on Friday that the struggling bank had many top customers including a member of the Russian government.
The lender had also top energy companies including the country’s top oil producer Rosneft and state-owned oil pipeline monopoly Transneft among its clients, the newspaper said.
The Russian banking sector has paid a heavy price for the country’s economic crisis, brought on by sharp declines in the oil price and Western sanctions over Ukraine.
Soaring interest rates accompanied by corporate and household insolvencies have forced banks to set aside large provisions against bad loans.

Big Russian bank placed into temporary administration

AFP, MOSCOW: The Russian central bank said it was putting major lender Vneshprombank into temporary administration as the countrys economic woes put pressure on the financial sector. Citing the lenders financial difficulties, the central bank said on Friday Vneshprombank had been placed into temporary administration for six months. According to the Interfax Center for Economic Analysis, Vneshprombank ranked 34th by total assets earlier this year. Business daily Vedomosti, citing sources, said on Friday that the struggling bank had many top customers including a member of the Russian government. The lender had also top energy companies including the countrys top oil producer Rosneft and state-owned oil pipeline monopoly Transneft among its clients, the newspaper said. The Russian banking sector has paid a heavy price for the countrys economic crisis, brought on by sharp declines in the oil price and Western sanctions over Ukraine. Soaring interest rates accompanied by corporate and household insolvencies have forced banks to set aside large provisions against bad loans.