Cbank cancels licenses of 2 small Moscow-based banks

MOSCOW, Mar 13 (PRIME) -- The central bank has revoked licenses from Trade City Bank (Torgovy Gorodskoy Bank), ranked 231st by assets as of February 1, and Economic Union Bank, ranked 367th, the authority said in a statement on Monday.

Trade City Bank conducted highly risky lending policies, connected with the placement of money in low-quality assets. An adequate risk assessment revealed reasons for bankruptcy prevention measures. The bank was sometimes late in fulfillment of its liabilities to creditors and violated anti-corruption legislation by breaching rules of information reporting subject to obligatory control by the central bank.

Economic Union Bank, having an overall low asset quality, had a faulty risk assessment policy. The organization did not fulfill liabilities to creditors on time due to a low asset quality. The bank was also involved in operations with ghost companies and in dubious operations including money transfers abroad.

Both banks, headquartered in Moscow, are members of the deposit insurance system, which means that the depositors will be entitled for up to 1.4 million rubles in compensation.

(59.2174 rubles – U.S. $1)

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