Why Russia's Biggest Private Bank Rattles Nerves

Bank Otkritie FC, Russia’s largest private bank, has had a bumpy ride of late. In June it lost $1.7 billion in deposits. Then, following the collapse of a smaller competitor, a wave of rumors on social media questioning the bank’s stability grew so intense that Vadim Belyaev, its largest shareholder, was forced to address them. With the bank currently in talks with a potential investor over a significant capital injection, Belyaev has returned to the helm to calm the market’s nerves.

Probably not. The Bank of Russia considers Otkritie a systemically important lender, and First Deputy Governor Dmitry Tulin recently gave it an oblique vote of confidence. On Aug. 2, Tulin said he doesn’t expect any such lenders will lose their license in the foreseeable future.