The Russian Deposit Insurance Agency (Russian acronym, ASV) is considering rendering assistance to crisis-hit banks. ASV general director Alexander Turbanov has called for revitalizing the state support system for socially important banks. Similar functions were earlier performed by the Russian Agency for Restructuring Credit Organizations (ARCO) which was then transformed into ASV.
In 1998, when the financial crisis engulfed Russia, ARCO helped the Vozrozhdenie bank by redeeming R633 million in three-year
credit to the Cherkizovsky Meat Processing Factory. ARCO also lent R1.0 billion to Alfa Bank for developing its regional branch network, thus taking over the management of its blocking stake. If Turbanov’s proposal is supported, ASV will cooperate not only with banks deprived of licences but also credit organizations whose financial standing can still be improved. For now, however, ASV has no proposals on criteria to select banks that need help. (Vedomosti)
