A Fitch Ratings report on the bank said it had a total of $1.8 billion in a short-term deposit by a single depositor. The account is owned by a legal entity, a representative of the agency said.
"It is expected that the term of the deposit will be extended, and the depositor has held its funds at the bank since 2006," Fitch said in the report. The representative said he didn't know what size the deposit was in 2006.
In addition, there is another huge deposit of nearly $1 billion at Bank of Moscow, opened by a private individual, a source close to the Moscow government told Vedomosti.
This was confirmed by a counterparty of the bank, who learned it from the bank's management. Both deposits were opened at the bank in 2006, he said, but the deposits' owners are not connected. "These are funds from the sale of a business in the financial sector, and the company's owner is now leaving the business," the counterparty said in regards to the deposit owned by the private individual.
A Bank of Moscow spokesman said the corporate deposit is owned by "one of the bank's trusted partners." The spokesman declined to comment further.
As of Nov. 1, according to Trust Bank, Bank of Moscow had deposits of 135.7 billion rubles ($4.5 billion) from private individuals and 121.7 billion rubles from companies.
"Many banks have seen a high concentration of assets and liabilities, but their term is agreed upon in advance with large clients, which allows the banks to plan their cash flow," said Vladlen Kuznetsov, an analyst at Moody's.
Alexander Danilov, an analyst at Fitch, doesn't see a threat to the banks in such a concentration of deposits. "There is a risk that the deposit can be withdrawn at any moment, but the bank is expecting it to be extended and, even if it is withdrawn, it can cover the outflow with its cash on hand and liquid securities (which stood at about $3.5 billion at the end of October)." The bank can also get collateral-free loans from the Central Bank or put up securities, he added.
From 2006 to 2008, Absolut Bank, Orgresbank, Aton, Rosbank, Investsberbank, Expobank and insurance company RESO-Guarantee were all sold, said Leonid Slipchenko, an analyst at UralSib. Their former owners and sources close to them all told Vedomosti that they don't keep money in Bank of Moscow.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.