PSB’s implosion has been a catastrophe for everyone.
PSBs founders built, in relatively short order, one of the most important systemic banks in Russia. Until it was taken over by the central bank to prevent the collapse, it was ranked no. 8 nationwide in terms of retail deposits and no. 5 for small to mid-sized business loans. It had grown exponentially, year-over-year, since 2001.
The bank ran into some liquidity problems in 2012. It withdrew its IPO plans. It was not alone. Numerous Russian banks were hurting. Alarm bells went off at the central bank.
They found that PSB’s credit profile was loaded with risk and bad equity investments.
Read More.. Source Forbes