Alfa Bank, the Russian bank which provides services including wealth management, has won approval for a R29.18 billion (around $920 million) loan from the state-run Vnesheconombank, or VEB, as part of moves by the Russian government to alleviate credit shortages.

The subordinated loan is to be issued by year-end 2020 at 9.5 per cent.

Around the world, banking groups have been raising capital to boost their balance sheets at a time when a number of firms have been hit by the financial turmoil. Among the worst-hit banks have been those with wealth management operations, such as UBS and Citigroup.

Wealth management services are provided for Alfa’s clients through its Alfa Capital subsidiary. It has total assets under management of $1 billion.