Central bank recalls license from Moscow-based RAM Bank

MOSCOW, Jul 26 (PRIME) -- Russia’s central bank has recalled a license from Moscow-based RAM Bank, ranked 296th by assets as of July 1, the regulator said.

RAM Bank underreported the amount of loan impairment reserves in order to hide its real financial state. Reassessment of credit risks under a regulator’s order showed a decrease in the bank’s capital by more than 20% which poses a threat to interests of its creditors and depositors, the authority said.

The bank did not comply with federal banking regulations and violated central bank bylaws.

RAM Bank is a member of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.

The Deposit Insurance Agency (DIA) said that payments to the clients of the bank will start no later than August 9.

(63.1572 rubles – U.S. $1)

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