Bank of Russia unhappy with Frolov’s comeback

27 November 2009 (11:15)

NOMOS-BANK recently confirmed the fact that they co-invested some money in Vladimir Frolov’s new banking project – a settlement bank. According to NOMOS-BANK, the settlement bank will be based on the existing URAN Commercial Bank; the Central Bank of Russia has already agreed to the acquisition of the latter by the investors.

NOMOS-BANK is going to buy a majority shareholding in URAN, while Vladimir Frolov is buying a blocking shareholding,’ the bank reports.

According to Kommersant, NOMOS-BANK now owns 75% of URAN Commercial Bank. Actually, the bank will probably be renamed, so its services will be offered under a new brand.

Kommersant claims the Central Bank of Russia is really taken aback by Vladimir Frolov’s return to banking business, but there is nothing the bank can do about it.

‘When the former owner of a bank that had to undergo financial recovery buys a blocking shareholding in another bank in less than a year after the incident, he does not go against the law, but it is not ‘in good taste’ to do so,’ the Bank of Russia’s Licensing and Financial Recovery Director Mikhail Sukhov informed the newspaper.

In the meantime, the Central Bank has already designed a project of a bill that will prevent the former owners of problem banks from acquiring new banking assets and assuming managerial positions in the banks. However, the bill has not been adopted yet.

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