Deals
Russia Offers Emergency Bank Aid to Prevent Otkritie Contagion
- Central bank to offer short-term loans to avoid panic
- Regulator takes over first systemically important bank
This article is for subscribers only.
Russia’s central bank moved to contain a slow-motion banking crisis, offering support to other lenders after announcing the takeover of the largest institution yet.
Bank Otkritie FC, Russia’s biggest private lender a month ago, is the first bank to be taken over by a fund created so that the central bank can carry out rescues without private investors. While the emergency funding is intended to calm the market, Otkritie’s troubles signal that Russia’s banking system is still suffering from the recession that ended late last year.