Cbank revokes license from Moscow-based Tempbank

MOSCOW, Oct 2 (PRIME) -- The central bank has revoked a banking license from Moscow-based Tempbank ranking 174 by assets as of September 1, the regulator said on Monday.

The bank did not comply with federal banking regulations, and its shareholders’ equity fell below the minimum level.

The bank’s business model was focused on servicing interests of its owners, the regulator said. Lending to borrowers directly or indirectly connected with the bank’s beneficiary owners led to a significant volume of troubled non-working assets at the bank.

Tempbank also failed to properly estimate its risks, while its managers and owners did not take efficient measures to normalize its operations, the central bank said.

On April 5, the central bank introduced a 3-month moratorium on debt claims and appointed the Deposit Insurance Agency (DIA) as interim administration for six months due to the Tempbank’s unstable financial state and threats to interests of creditors and depositors. On July 5, the central bank prolonged the moratorium for three months.

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.

(58.0169 rubles – U.S. $1)

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