VEDOMOSTI. The Central Bank of Russia has prohibited Rost Bank to take over lending institutions, a financier who learned this from CBR employees and is the bank’s counterparty tells business daily Vedomosti. Prior to the beginning of the banking group’s reorganization the regulator commenced the bank’s inspection, which has not yet been accomplished, but the Bank of Russia has already banned the bank to take over other lending institutions, Rost Bank’s counterparty says. The bank’s spokesman confirmed this. The Bank of Russia makes no comments on the activity of operating banks.
The regulator’s ban is related to “its serious order”, says the bank’s counterparty, adding Rost Bank needs to put aside an additional Rub 4.7 bln in provisions, which is a large amount for the bank. In line with the bank’s financial statement, as of October 1, 2014 the lender’s capital was equal to Rub 13.4 bln. The bank’s spokesman confirmed the receipt of the regulator’s order to form Rub 4.7 bln in provisions against the bank’s loans. “The bank fulfills all the regulator’s demands, the provisions were formed on October 21. In this connection the bank faces no financial difficulties as its shareholder provided the funds," he says.
The lending institution meets capital adequacy ratios in the Bank of Russia’s daily financial statement right now and will not make any violation as of reporting dates, the Rost Bank spokesman says, admitting the bank’s relevant ratios will no longer be excessive (Rost Bank’s total capital adequacy ratio stood at 13.04% as of October 1, 2014). The provision formation order was driven by the Bank of Russia’s decision to temporarily ban to fold the group’s other banks into Rost Bank, he concludes, adding the ban will be in effect for six months.
Rost Bank is known for frequent purchases. To remind, the lender acquired in 2012 and later took over Bank Kazansky, Smolensk-Bank SKA-Bank in January 2014 and purchased Bank Kedr this May. The lending institution also owns Baikalinvestbank and Uralprivatbank. Rost Bank planned to take over SKA-Bank, TverUniversalBank, Baikalinvestbank and Uralprivatbank, the lending institution’s spokesman specifies.
Rost Bank has another order received this July, namely, to limit for six months the drawing of retail deposits, i.e. retail funds should not exceed a relevant indicator as of July 7, 2014, says the bank’s spokesman, adding at issue is around Rub 43 bln (46% of the bank’s liabilities at that time).
