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Run on Russian bank heightens fears

Posted By admin On October 16, 2008 @ 10:22 am In Money Watch | Comments Disabled

Charles Clover and Catherine Belton
Financial Times [1]
Thursday, Oct 16, 2008

Globex on Wednesday banned depositors from withdrawing their money as confidence in the Russian banking system began to show signs of ­evaporating.

Globex, a mid-sized retail bank with assets of $4bn (€2.95bn, £2.32bn), is the first Russian bank to experience a run on deposits during the crisis. It lost 13 per cent of its deposits last month, according to Maxim Raskosnov, an analyst at Renaissance capital, and a further 15 per cent this month according to Emilya Alieva, Globex’s vice-president.

At least a dozen other Russian banks have reported a sharp rise in withdrawals and account closures.

An economist with a leading western bank in Moscow said Globex was probably the first in what could be a number of bank panics, if the government did not take concerted action soon. “I think there are a large number of small and medium sized banks that are in the same situation,” she said.

(Article continues below)

Run on Russian bank heightens fears  161008pptv1 [2]

Despite a Kremlin promise of $200bn in relief funds – $87bn this week – the fall-out of a stock market plunge and the global credit crunch appears to be worse than anticipated, analysts say.

Full article here [1]

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URLs in this post:

[1] Financial Times : http://www.ft.com/cms/s/0/b2115c90-9afd-11dd-a653-000077b07658.html

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] Russian Central Bank Buys 100 Tons of Gold: http://www.prisonplanet.com/russian-central-bank-buys-100-tons-of-gold.html

[4] New Rudd Government tax on bank deposits will hit you: http://www.prisonplanet.com/new-rudd-government-tax-on-bank-deposits-will-hit-you.html

[5] Ireland fears civil unrest as bank crisis deepens: http://www.prisonplanet.com/ireland-fears-civil-unrest-as-bank-crisis-deepens.html

[6] Cyprus MPs vote down government raid on private bank accounts in defiance against IMF and EU central bank: http://www.prisonplanet.com/cyprus-mps-vote-down-government-raid-on-private-bank-accounts-in-defiance-against-imf-and-eu-central-bank.html

[7] Are Wall Street Protesters Capable Of Starting A Run On A Too Big To Fail Bank?: http://www.prisonplanet.com/are-wall-street-protesters-capable-of-starting-a-run-on-a-too-big-to-fail-bank.html

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