Russian central bank bails out Otkritie Bank

And the Russian central bank was doing so well…

Well, it was better than what other central banks like the Federal Reserve, the Bank of Japan (BOJ) and the European Central bank (ECB) were doing.

Reuters is reporting that the Russian central bank has decided to bail out Otkritie Bank, one of the nation’s biggest private lenders. It will become a shareholder in the bank as the company continues to operate as normal.

Why did the central bank bail out the lender? It’s simple: its clientele includes 3.4 million individuals, 29,000 corporations and 163,000 small- and medium-sized enterprises. It also has 400 offices scattered across Russia.

The central bank pretty much defended its actions by saying how important the lender is to the Russian economy.

“The bank is a systemically important credit organization, it occupies the 8th place in terms of assets,” the central bank wrote in a press release. “The Bank’s infrastructure includes 22 branches and more than 400 internal structural subdivision.”

Ostensibly, the central bank had also circumvented western sanctions by utilizing Otkritie. In other words, the financial institution served as a great political weapon to avoid immense impact from the unjustified sanctions from the west.

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