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Central Bank of Russia to bail out Trust Bank with $530m

Russia's central bank is set to pump in an emergency loan of up to RUB30bn ($530m) to bail out the troubled Moscow-based mid-sized lender Trust Bank.

Central Bank of Russia

The loan will enable Trust Bank to have sufficient liquidity to continue operations.

The central bank’s Deposit Insurance Agency, which manages crisis-hit banks, is expected to take over interim supervision of the lender.

This will enable Trust Bank to continue its smooth payments operations and allow its clients to use its services without interruptions.

The central bank said it will soon select a major bank to bail out the retail bank.

According to Interfax data, Trust is the 32nd largest lender by assets in Russia and the 15th largest in terms of private personal accounts, including deposits, reports Reuters.

Trust Bank is said to have held RUB145bn ($2.63bn) in private personal deposits as of 1 December 2014.

A new law is being prepared by the government, under which the country’s banking sector could get a capital injection of up to RUB1 trillion ($18bn).

Image: Central Bank of Russia. Photo: courtesy of Kuba