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Wednesday, November 22, 2017

Sberbank to handle payments of shuttered Master Bank

Sberbank, the largest bank in Russia and Eastern Europe, has been allowed to take over payments that had been handled by Master Bank, which was shut down by the central bank.

Master Bank was stripped of its license on Wednesday over "large-scale dubious operations," as the central bank followed through on warnings by new head Elvira Nabiullina that it will crack down on financial chicanery, Reuters reports.

"Sberbank is prepared to support the payments of clients of commercial banks, the processing of which Master Bank secured," the state-controlled bank said, according to Reuters.

Master Bank is ranked 72nd in Russia by assets, but its closing causes problems for employers, shops and restaurants because of its role in clearing credit card payments and managing salary payment schemes.