The Central Bank decided to sanitize Otkritie Bank

The Central Bank has decided to increase the financial stability of Otkritie Bank, according to the financial regulator’s website.

The main investor will be the Central Bank, using funds from the Banking Sector Consolidation Fund; a temporary administration has been introduced at Otkritie. The agency promises that this will allow the bank to operate continuously.

It is emphasized that the organizations and services that are part of the Otkritie group - Rocketbank, the insurance company Rosgosstrakh, Trust Bank and others - will continue to operate as usual.

Sources of Vedomosti warned earlier in August that the Central Bank may choose just such a financial recovery option for Otkrytie, this is the first project of the Banking Sector Consolidation Fund.

Two months earlier, about 621 billion rubles were withdrawn from the bank, but in July Otkritie borrowed 333 billion rubles from the Central Bank without collateral under repo transactions.

Otkritie has been operating since 1993; before the loss of funds, the bank was the largest private bank in Russia. According to Banki.ru, as of August 1, it ranked eighth in terms of assets in the Russian banking system.

Central Bank Chairman Elvira Nabiullina announced plans to create a special fund for reorganization in the summer of 2016; it was planned that a temporary management company would be able to reorganize or merge the banks being rehabilitated.