Cbank introduces provisional administration at Sputnik Bank

MOSCOW, Sep 10 (PRIME) -- Russia’s central bank has charged the Deposit Insurance Agency (DIA) with the functions of the provisional administration at Samara-based Sputnik Bank, the 292nd by the amount of assets, for six months and imposed a moratorium on fulfillment of creditors’ claims, the regulator said in a statement on Friday.

The bank has repeatedly violated laws and regulatory acts of the central bank that regulate banking activity. It also provided inaccurate reports with the underestimated credit risk and the overestimated cost of assets. The proper assessment ordered by the regulator revealed that the bank’s capital decreased below the requirement stipulated by its banking license.

The bank was also involved in dubious currency transactions.

The bank is a participant of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation. The DIA said in a statement that payments to the bank’s clients will start no later than on September 24.

Sputnik Bank is the only credit institution in Russia that services the operations of UN agencies for North Korea as part of the implementation of UN Resolution 2270.

(73.1290 – U.S. $1)

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