The Asian-Pacific Bank is One of the Largest in the Far East

28 april 2018 | Rossiyskaya Gazeta

The Bank of Russia has decided to restructure the Asian-Pacific Bank, appointing temporary administration. The Bank of Russia is going to support the bank and guarantee its continued operation during the period of financial rehabilitation measures.

Daniil Nametkin
Daniil Nametkin
Department for Expert Analytics

"ATB is the 60th largest bank in Russia in terms of assets and one of the largest banks in the Far East. The bank has RUB 118 billion worth of assets and it holds RUB 60 billion worth of household deposits and RUB 17 billion worth of cash deposited by various organizations," Analytical Center expert Daniil Nametkin noted in an interview with a Rossiyskaya Gazeta journalist.

He says that ATB's financial situation deteriorated after its subsidiary M2M Private Bank got its license revoked in December 2016. ATB was supposed to create a 100% reserve for the investments in the stock and other liabilities of its subsidiary. These totaled RUB 8.9 billion.

The bank may require RUB 14–19 billion in aid from the Banking Sector Consolidation Fund, Mr. Nametkin believes. ATB's credit portfolio is about RUB 68.2 billion, RUB 8.8 billion of which are overdue loans. "If we assume 100% reserves for these loans and partial additional reserves during the reappraisal of the risks for the remaining loans, the bank may need as much as RUB 15–20 billion," the expert says. Seeing how as of April 1 ATB reported the equity (capital) adequacy ratio (H1.0) of 9.14% while the minimum for the ratio is 8, the bank may increase its reserves by RUB 1.3  billion without additional investments in its capital.

Source: Rossiyskaya Gazeta

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