As of December 24, 2013 the Deposit Insurance Agency (DIA) begin to rehabilitate Nizhny Novgorod-based Ellips Bank, data posted on the Bank of Russia’s website showed.
The decision to rehabilitate the lender aims to restore creditworthiness of one of the leading banks in the Nizhny Novgorod region. Ellips Bank continues to operate as usual, all clients, including deposit holders, can consume its services, the regulator said in a press release.
The Bank of Russia authorized the Deposit Insurance Agency (DIA) to perform duties of a temporary administration to run the bank. The authority of the bank’s shareholders was suspended for the period when the temporary administration team is at work. To begin with, the bank’s charter capital will be reduced to Rub 1.00, and later the lending institution will get a cash injection from DIA’s resources. As a result, Ellips Bank’s current shareholders will finally lose control over the bank. The Bank of Russia will provide the Deposit Insurance Agency (DIA) with a Rub 5.36 bln credit for initial rehabilitation purposes. This will help Ellips Bank make settlements with clients non-stop and restore its stable financial standing.
Longer term, Ellips Bank is expected to be reorganized through its takeover by Rossiyskiy Capital, which is DIA-controlled.
