Central Bank Freezes Svyaznoy Bank’s Deposit Transactions for 3 More Months

27 February 2013 (10:53)

February 27, 2013. The Bank of Russia extended its freeze on Svyaznoy Bank’s deposit transactions for three more months. The bank reports this was caused by the fact that the company exceeded the deposit growth rates approved of by the Central Bank, RBC daily reports.

The bank owner Maxim Nogotkov told the newspaper that the bank was not forbidden by the Central Bank to accept private individuals’ savings on its deposits; nor were any other limitations imposed on the asset growth.

‘Svyaznoy is quite allowed to accept private individuals’ funds, it’s just that this has to be done under certain conditions,’ a bank representative explained. He said the Central Bank extended a limit on deposit transactions in November because Svyaznoy had exceeded the upper limit on the deposit volume allowed by the regulatory body (the exact figures were not disclosed, however).

Despite the Bank of Russia’s stance, Svyaznoy Bank has no intention of changing its plans, so on March 1, the sales of its all-purpose bank card will be resumed. The new product does have an overdraft limit, but no interest will be paid on the money remaining in the customers’ accounts. This plastic card type used to be the bank’s flagship product that allowed its customers to make a profit on the money they had in their accounts.

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