Russia’s central bank is planning to create a “bad bank” to handle the distressed assets of three large failed private banks, and to lend the new entity about $19 billion, one of its deputy governors has told local media.

The plan appears to represent a considerable increase in the projected costs to the Russian state of the failure of the three banks.

Bank of Russia deputy governor Vasily Pozdyshev told local Russian news agencies on April 2 that the new entity would take over the stressed