The Central Bank is saving the Russian sub-company of Ukrainian “Privatbank”

07.03.2014

At the 6 of March The Central Bank made the decision on implementation of measures for the prevention of bankruptcy of “Moskomprivatbank” — Moscow sub-company of the largest Ukrainian “Privatbank” bank. Moskomprivatbank is included in TOP 100 of banks of the Russian Federation. Functions of temporary administration in bank are transferred to agency on insurance of deposits.

Such actions will provide uninterrupted servicing by Moskomprivatbank of the clients. The bank continues to work in the regular mode, and all clients can use bank’s services.

The temporary administration is appointed in case if the bank doesn't meet more than a week the requirement of creditors, seriously violates standard rates, doesn't implement the plan of the regulator for financial improvement or in case the presence of the bases for revocation of license

Based on: http://www.cbr.ru/press/PR.aspx?file=06032014_133553vradm1.htm

Expert’s opinion

Moskomprivatbank has 31 branches of a bank in Russian Federation. The regional area network consist of 3 divisions and 220 branches, bank has 2000 cash machine and 9000 point-of-sale terminal.

But suddenly! Such bank is kind of non-profit bank and it is necessary to “eliminate and brake down it”. It is simple coincidence that the owners of this bank are Ukrainians. Apparently it is difficult to run a business in Ukraine and to govern in the right way and Russia again extends a hand of friendship to Ukraine

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)