Cbank revokes banking license from Kemsocinbank

MOSCOW, May 31 (PRIME) -- Russia’s central bank has revoked a banking license from Kemerovo-based Kemerovo Social Innovation Bank, or Kemsocinbank, ranked 320th by assets as of May 1, the regulator said on Friday.

The bank underestimated the amount of reserves that should be formed for possible losses in order to improve financial performance and conceal its real financial position. An adequate reflection of accepted credit risks in the bank’s financial report leads to a complete loss of capital, the regulator said.

Kemsocinbank also conducted transactions to artificially maintain capital for formal compliance with regulatory requirements.

The bank is a member of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation. Payments to the bank’s depositors will start no later than on June 14, the Deposit Insurance Agency (DIA) said.

(65.0583 rubles – U.S. $1)

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