Togliatti-based Fia-Bank, which experienced panic of its deposit holders driven by the problems faced by regional banks, is in talks with the Bank of Russia over a stabilization credit of up to Rub 1 bln.
“At present, the bank is looking for additional sources of funding to give the money back to its clients. The work is in progress to raise additional funds from CBR against collateral of the credit portfolio in the amount of up to Rub 1 bln," the bank said in a press release.
Furthermore, the bank intends to draw up to Rub 1.5 bln from commercial banks against collateral of its mortgage portfolio. “Moreover, the bank has been accumulating funds from the current repayment of the credit portfolio and has been earmarking the money to fulfill its obligations to the clients, in the amount of up to Rub 500 mln per month," Fia-Bank noted in the press release.
As the bank’s employees said, individuals’ requests to dissolve deposit account agreements ahead of schedule climbed 6x against October. “This led to the urgent and premature repayment of retail deposits for over Rub 1.7 bln, while the outflow of corporate funds totaled more than Rub 600 mln, which in the aggregate accounts for more than 11% of the bank’s liabilities," said the bank.
Fia-Bank imposed restrictions on the payment of funds held on deposit accounts. Also, the lending institution applied restrictions to ATM withdrawals (Rub 50,000.00 per month). As Fia-Bank’s department for image policy and advertising told a Banki.ru reporter, the financial institution had to limit the payment of deposits as employees have no time to process such number of deposit withdrawal applications.
