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CORRECTED-Russian stocks fall as c.bank announces B&N bank request for bailout
September 20, 2017 / 8:15 AM / a month ago

CORRECTED-Russian stocks fall as c.bank announces B&N bank request for bailout

(Corrects headline and story to show the central bank announced a B&N request for a bailout, not its decision to rescue the bank)

MOSCOW, Sept 20 (Reuters) - Stocks in Russian banks and financial companies fell on Wednesday, pressured by concerns about contagion in the banking sector after the central bank announced a request for a bailout of from a major lender.

The owner of Russia’s 12th biggest lender by assets, B&N Bank, has asked the central bank for a bailout three weeks after another leading Russian bank, Otkritie, had to be rescued.

The composite financial sector stock index was down 0.4 percent as of 0750 GMT, underperforming the headline rouble-traded MICEX index that shed 0.1 percent to 2,046.6 .

“For the local mood the main theme today is B&N Bank’s request for financial rehabilitation from the central bank,” ING said in a research note.

The request for a rescue by B&N bank, a holding group controlled by tycoon Mikhail Gutseriev and his family, comes amid a wide-scale clean-up of the banking sector that began in 2013 as Elvira Nabiullina was appointed the central bank governor.

Despite a steadily shrinking number of banks, officials and banking sector analysts say they do not see a risk of a systemic banking crisis. They say that state-controlled banks, which account for more than half of assets in the sector, have strong capital positions so are not in danger.

The Russian rouble was little changed, trading at 58.12 versus the dollar and at 69.74 against the euro .

Brent crude prices, a global benchmark for Russia’s main export, played on the upside for the Russian market as they went up 0.5 percent to $55.4 per barrel.

For rouble poll data see reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=RUB=

For Russian equities guide see

For Russian treasury bonds see

Russia in graphics: link.reuters.com/dun63s (Reporting by Andrey Ostroukh; Editing by Hugh Lawson)

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