business
Monday, December 22, 2014
Currency turmoil and sanctions make the Russian banking sector to create. The central bank has now for the first time since the crisis began preserve an ailing institution before the collapse.
The Russian central bank rescues for the first time since the outbreak of the Russian ruble crisis, a bank from bankruptcy. The Trust Bank would be made up to 30 billion rubles (about 435 million euros) is available, said the central bank. The Institute is placed under state supervision, it will continue its activities. Private customers held December 1 credit in the amount of 145 billion rubles (2.1 billion euros). The central bank announced that it would seek an investor for Trust. This could be one of the major banks in the country.
ChartsWhy the bank must be sa ved, the central bank did not disclose. But the whole sector is suffering from the financial sanctions imposed by the West. The biggest banks are effectively cut off from the US and the European financial market. That’s it for, among other reasons a problem because they have gone into debt in foreign currencies. According to the Russian Central Bank, the volume of external debt of banks located at 192 billion dollars.
The government made the sector last week in aid of the equivalent of 13.6 billion euros in view. In addition, the central bank will facilitate access to dollar liquidity.
Given the violent fluctuations of the ruble exchange rate, the stock market and the bond market Russian banks are becoming more cautious with each other to borrow money. According to the “Financial Times” Interest rates on the interbank market at the highest level in nine years. In addition, many Russians apparently empty their accounts. Last week it was, for example at Ikea in Moscow to long queues at the tills. Due to high demand, the company announced the sale of kitchen furniture and equipment in Russia temporarily suspended.
Advertise with Bruce Willis
The Trust Bank is on the ranking of the largest banks in the Land for deposits in 16th place, by total assets at No. 28. She is active in Moscow and other major cities and offers on deposits high interest rates. In addition, the Bank provides consumer loans.
The Institute has long benefited from the rise in Russia consumer spending. But in the meantime, economic growth is virtually come to a standstill, the country faces a recession. The interest rate is 17 percent. Against this background, consumer spending has declined markedly.
The Trust Bank promoted in Russia with the Hollywood star Bruce Willis. A poster read: “I’m cool – the Bank Trust also.”
The Russian government has already seized this year several banks under the arms cut off because of the sanctions in the wake of the conflict of the Western Ukraine credit markets. Among the previous recipients of government assistance included the bank VTB.
Source: n-tv.de
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