Measures aimed at improving financial stability of PJSC MIN BANK
The Bank of Russia approved the plan of its participation in bankruptcy prevention measures for the Moscow-based Public Joint-stock Company Moscow Industrial Bank or PJSC MIN BANK (Reg. No. 912, ) (hereinafter referred to as the ‘Bank’).
Measures aimed at ensuring the Bank’s continuous activity in the banking services market and improving its financial stability provide for the participation of the Bank of Russia as an investor using the facilities of the Fund of Banking Sector Consolidation. As the top priority measure, the Bank of Russia will provide the Bank with funds to maintain liquidity.
In order to perform all necessary measures to support the Bank’s activity, by Bank of Russia Order No. OD-109, dated 22.01.2019, the functions of the provisional administration to manage the Bank are assigned to LLC Fund of Banking Sector Consolidation Asset Management Company, effective 22.01.2019.
The Bank of Russia Board of Directors took a decision to guarantee the continuity of the Bank’s activity during the duration of the plan of the Bank of Russia’s participation in its bankruptcy prevention measures.
The Bank of Russia took the decision to apply bankruptcy prevention measures due to the Bank’s failure to overcome financial difficulties it had been facing over the last several years. The Bank’s problems have been caused primarily by its strong engagement in financing non-performing investment projects in such areas as construction, manufacturing and real estate operations. As a result, a large part of the Bank’s assets became illiquid and ceased earning profit. The recognition of impairment of such assets led to a sharp drop in the Bank’s capital and to a violation of the required ratios.
The Bank is ranked 33rd by assets among Russian banks (as of 01.01.2019, the Bank’s assets totalled 320.5 billion rubles). It has a large number of individual and corporate clients, including small and medium enterprises, budgetary and non-profit organisations across the country.
The Bank will continue to operate in the ordinary course, meeting its obligations and conducting further transactions. No moratorium on payments under creditors’ claims is introduced.
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