Official Central Bank of Russia press release “On measures to improve the financial stability of B&N Bank and Rost Bank”
The Central Bank of Russia has decided to implement measures targeted at improving the financial stability of Moscow-based Public Joint-Stock Company B&N Bank and Joint-Stock Company Rost Bank (the “Banks”).
Under these measures, the Central Bank of Russia is to participate as the main investor with funding coming from the Banking Sector Consolidation Fund.
These measures, targeted at improving the Banks’ financial stability, are being implemented in cooperation with the Banks’ current owners and management, which will ensure the continuity of their operations in the banking sector, as well as enabling the implementation of all necessary measures to support the Banks’ development going forward.
PJSC B&N Bank and JSC Rost Bank, together with other Group banks – JSC B&N Bank Digital (Moscow-based) and JSC Uralprivabank (Yekaterinburg-based) – continue to operate as normal, meeting their obligations and conducting new business. The Central Bank of Russia will provide financial support to the Group Banks and guarantee the continuity of their operations.
No moratorium on payments under creditors’ claims is introduced. No bail-in option will be applied.
In accordance with Order № OD-2723 dated 20 September 2017, and pursuant to Articles 189.25, 189.26, 189.31 of Federal Law № 127-FZ dated 26 October 2002, the Central Bank of Russia has appointed a temporary administration to manage B&N Bank. In accordance with Order № OD-2724 dated 20 September 2017, and pursuant to Articles 189.25, 189.26, 189.31 of Federal Law № 127-FZ dated 26 October 2002, the Central Bank of Russia has appointed a temporary administration to manage Rost Bank. The temporary administration is composed of Central Bank of Russia officers and employees of the Banking Sector Consolidation Fund management company.
PJSC B&N Bank was established on 6 March 1991. It ranks № 8 by total assets, and is a credit institution of significance. The Bank includes 12 branches, one representative office and more than 400 offices.