Russia’s B&N Bank, the country’s 12th biggest lender by assets, has sought a bailout from the central bank, just three weeks after another leading Russian bank had to be rescued, The Financial Times reports.
Russia’s central bank has decided to provide B&N Bank with liquidity after it turned to the regulator with such a request, the central bank said on Wednesday.
The Russian financial regulator did not specify how much funds B&N Bank had asked for.
B&N Bank is controlled by Russian oligarch Mikhail Gutseriev. The bank’s management admitted that they had under-estimated the problems within the banks it had bought during an expansion drive.
“Our objective is, with the support of the central bank ... to conduct an effective financial rehabilitation of the bank,” said Mikail Shishkhanov, who was named as chairman of B&N Bank, whose assets, according to ratings agency Fitch, account for 2% of the Russian banking system.