Central Bank secretly allocates $300.000.000 to revive Genbank of Crimea
The Central Bank had stopped issuing loans for reorganization of banks in 2017.
The Agency for Deposit Insurance sent 20.270.000.000 rubles ($300.000.000) for the reorganization of Genbank, a Russian bank operating in the Crimea, in February 2018. Vedomosti reported the news citing the bank's financial statement.
About 5 billion rubles was spent on increasing the bank’s capitalization, 4 billion rubles was spent on maintaining liquidity, and the remaining funds covered the imbalance.
The Central Bank had stopped issuing loans for the reorganization of banks in 2017. The State Duma passed a law that obliged the regulator to enter the equity capital of credit institutions through the Banking Sector Consolidation Fund. The new system was used to revive the Otkrytie, Promsvyazbank, and Binbank.
The Genbank reorganization began when the new law was already in effect. The regulator could have used the old scheme to prevent its fund and the banks under the reorganization from getting affected by the Crimea sanctions, Ivan Tertychny (Tertychny Law) said.
Genbank is the second largest bank in the Crimea in terms of assets and ranks 109th in Russia. Among its Crimean shareholders is the financier Evgeny Dvoskin, who is considered one of the most influential bankers on the peninsula. In Russia, he had been involved in money laundering trials and blackmail of small banks, but his guilt was not proven officially. In 2008, FBI arrested Dvoskin in Monaco on charges of $2.300.000 fraud in securities of US companies.