FX.co ★ Peresvet bank trims deposit withdrawals

The Russian bank Peresvet, the Russian Orthodox Church (ROC) being one of its shareholders, introduced the 100,000 ruble limit on deposit withdrawals, Rambler News Service reported as quoted by a bank representative.
According to the representative, the flow of clients willing to get their funds back increased due to media reports. The bank management decided to limit deposit withdrawal to 100,000 rubles and to $1,500 in order to keep liquidity at an acceptable level.
On October 5, referring to the Fitch data, the media revealed that large borrowers of Peresvet showed some signs of affiliation with each other, the bank’s shareholders, or the bank management. Besides, 12 billion rubles out of 17 billion ruble credits make up subprime loans. This means the institutions that got money do not have real assets and Peresvet is their only lender.
Standard & Poor’s pointed out that it is a business model of a financial organization, which attracts corporate clients and wealthy people thanks to contacts of its shareholders. S&P considers the business model based on stable relationship a great advantage of the bank.