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. Last Updated: 07/27/2016

German Bank's Moscow Plans

MUNICH, Germany -- Bayerische Hypotheken-und Wechsel-Bank, a German mortgage bank, said it will apply to open a fully licensed subsidiary in Moscow, joining a growing number of German banks seeking to expand in the Russian market.

Hypo-Bank will deliver its completed application to Russia's Central Bank, by Dec. 31, said Hypo-Bank spokeswoman Sybille Hattwich.

Hypo-Bank is in the middle of merger negotiations with Bayerische Vereinsbank to create what would be Germany's second-largest publicly traded bank. Hypo-Bank's Russian unit would be renamed after the merger, she said.

"We expect a decision about our application within six months and hope to start banking in Russia on July 1," Hattwich said.

Hypo-Bank, like many of Germany's largest banks, has operated a representative office in Russia, which limits the bank's activities mostly to advising clients.