23.12.2008, 17:41
Bank of Russia Deems to Create Special Fund for Asset Buyout
OREANDA-NEWS. December 23, 2008. The Bank of Russia deems advisable to create a special fund for asset buyout from banks during the financial crisis and views it as an additional capitalization mechanism for lending institutions. “Such a measure could be necessary under certain economic conditions” – said Head of CBR's Licensing and Financial Recovery Department Maxim Sukhov. In his opinion, an asset buyout without bank ownership shakeups should be viewed as an bank capitalization option rather than an instrument favoring the financial recovery of lending institutions. He added that the buyout of assets of a certain class is at issue from any bank which has them, for instance, in the event of high unemployment rate which involves defaults in payments under consumer loans and banks with such assets will need help.
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