MKB shares on the Moscow Exchange have fallen by a third since the beginning of the year

Earlier, the specialized publication Frank Media reported that the top management of the Moscow Credit Bank would change, with managers from the All-Russian Regional Development Bank (VBRR) coming

Since the beginning of the year, shares of Moscow Credit Bank have fallen by almost 35% on the Moscow Exchange. It now ranks eighth in assets among the largest Russian banks.

MKB is a former bank of the so-called Moscow Ring: in 2017, this group included credit institutions linked by cross-investments in each other’s assets and liabilities, which masked their capital problems.

Three of them — Otkritie, Binbank, and Promsvyazbank — were eventually subject to rehabilitation, but MKB avoided it at the time. Its co-owner, billionaire Roman Avdeev, sold the asset only last year, and control over the bank passed to structures of the Region group of Sergei Sudarikov.

Recently, the specialized publication Frank Media reported that the top management of the Moscow Credit Bank will change and key positions in the credit organization will be occupied by managers from the All-Russian Bank for Regional Development.

VBRR is a strategic partner of Rosneft, it is its largest corporate client. Alexander Timofeev, Director of Financial Markets and Macroeconomics Analysis at F-Broker, discusses what is happening with MKB shares:

Alexander Timofeev, Director of Financial Markets and Macroeconomics Analysis, F-Broker

Last year, the bank saw its profits fall. In May, the rating agency ACRA placed it in the group with “limited capital adequacy.”