The Central Bank of Russia announced the beginning of Bank Uralsib's reorganization by taking over Bashprombank and Bank BFA, the regulator's press service reported.
"In accordance with Article 23.5 of the Federal Law "On Banks and Banking Activity" the Bank of Russia announced the start of a procedure for reorganizing Bank Uralsib PJSC (Registration No. 2275, Moscow) by taking over Bashprombank PJSC (Registration No. 1006, Ufa), and Bank BFA PJSC (Registration No. 3038, Saint Petersburg), said a press release.
The media reported in August 2016 that Bank BFA will be folded into under-rehabilitation Bank Uralsib. The merger of the banks requires approval from the Bank of Russia and the Deposit Insurance Agency, and also amendments to Bank Uralsib's rehabilitation program.Until now there have not been any precedents when a healthy bank is to merge with a troubled bank.