OREANDA-NEWS. February 6, 2009. Russian authorities could allocate at least RUB 500 bn more to capitalize state-run and private banks in the coming months. The need for additional capital among banks is attributable to rising bad debts as a result of the weaker creditworthiness of their clients amid the crisis. Loan provisions have eaten into profit and capital of the banking system. The capital of state-controlled banks will be increased. The state's participation in Tier I capital could be at issue here. VTB is at issue, and we offer RUB 200 bn for this purpose. RUB100 bn for VEB plus possibly, a RUB 100 bn subordinated loan. According to Putin, Sberbank will also see assistance, if necessary. "The Bank of Russia, as the core shareholder, is ready and willing to resolve the task", Putin said.