Nov. 25 (Bloomberg) -- Russia’s central bank met with the units of foreign banks over the past few weeks to instruct them to limit lending to parent companies, Kommersant reported.
The regulator wants to prevent the Russian units from sapping liquidity from the local financial system to support their parent companies, the Moscow-based newspaper reported, citing unidentified bankers and a Bank Rossii official.
The Russian units of Raiffeisen Bank International AG, Societe General SA and Citigroup Inc. all boosted loans to non- residents by more than 20 percent in October, Kommersant said, citing regulatory findings. UniCredit SpA’s subsidiary in Russia, which has the highest amount of foreign loans, saw a 21 percent drop in October compared with September, the newspaper reported.
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