Otkritie is the country’s largest private lender by assets, according to second-quarter data from Interfax, and some of its shareholders are connected to major state entities, a fact that prompted some analysts to believe it was too big and influential to be allowed to fail.
Russia’s central bank launched one of the biggest banking bail-outs in its history on Tuesday, saying it would rescue troubled private lender Otkritie which has suffered a sustained run on its deposits amid worries about its loan portfolio.
The central bank said today it’s preparing emergency liquidity measures for other lenders after bailing out Otkritie, once Russia’s biggest private bank. Otkritie began experiencing massive deposit outflows after a surprise ratings downgrade, prompting clients to withdraw the equivalent of about $7.4 billion in June and July and sparking fears of contagion.
Otkritie FC Bank, is one of Russia’s largest private listed banks.It has 21 branches and 31 representative offices in Russia. It was co-founded by Igor Finogenov, now CEO of the Eurasian Development Bank.
Otkritie Bank ranks 1st among privately owned banks and 4th by assets among banking groups in Russia.