Russia's central bank moves to save Promsvyazbank, in third bailout this year

MOSCOW (Reuters) - Russia's central bank on Friday put the country's 10th largest private lender by assets under temporary administration, the third such bailout in the Russian banking sector this year.

The central bank said in a statement it was providing funds to support Promsvyazbank's liquidity and would send in temporary administrators.

It said there would be no moratorium on Promsvyazbank meeting creditors' claims, and that the bank was operating as normal.

"As part of measures aimed at increasing (Promsvyazbank's) financial stability and ensuring its continued work in the banking services market, it is planned that the Bank of Russia act as an investor using the funds of the Banking Sector Consolidation Fund," the regulator said in a statement.

Russia's banking sector has been under intense scrutiny since the central bank was forced to step in to save two of the country's private lenders earlier this year.

Otkritie Bank and B&N Bank were both subject to central bank bailouts in the space of a month after disclosing holes in their balance sheets.

Lawmaker Anatoly Aksakov, a member of the Duma finance committee and head of the Russian Banking Association, told TASS news agency Promsvyazbank's bailout would not affect the wider banking sector, and was the last time such a measure would be taken this year.

Sources close to Promsvyazbank told Reuters an agreement was reached late on Thursday night at a meeting between Promsvyazbank's co-owner and chairman, Dmitry Ananyev, and central bank governor Elvira Nabiullina

Promsvyazbank is Russia's 10th biggest bank by assets, according to Interfax data. Dmitry Ananyev and his brother, Alexei, together control just over 50 percent of the bank.

(Reporting by Maria Kiselyova; Writing by Jack Stubbs; Editing by Christian Lowe)