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Two Russian banks in talks with central bank on their capital, says Fitch

Staff Writer | November 20, 2017
Two Russian regional banks are in talks with the central bank about how to bolster their capital, according to a report by Fitch credit rating agency.
Otkritie Bank
Russia   Otkritie Bank and B&N Bank
Russia's banking industry is under increased scrutiny after two major private banks, Otkritie Bank and B&N Bank, sought bailouts from the central bank this year.

Fitch Ratings said in a note on Thursday that Asian-Pacific Bank, known as APB, and Uraltransbank, or UTB, had weak capital positions.

"Fitch understands that both banks have agreed capital rectification plans with the Central Bank of Russia, with certain milestones to be achieved within the next several months, while their inability to meet these targets may result in regulatory intervention," Fitch said in a report.

"However, the (banks' credit) ratings also reflect the fact that both banks are currently servicing their obligations and have reasonable liquidity cushions (larger at UTB)," Fitch said, retaining CCC credit rating for the two banks.