Central bank revokes license from Ufa-based Roscomsnabbank

MOSCOW, Mar 7 (PRIME) -- Russia’s central bank has revoked a banking license from Ufa-based Roscomsnabbank, ranked 132nd by assets as of February 1, the regulator said on Thursday.

The bank financed real estate construction with loans to companies belonging to business partners of the bank’s ultimate beneficiaries and associated persons. The central bank ordered Roscomsnabbank to reduce the risks, but the corresponding program failed so the bank’s stock of loans for the construction projects topped its capital more than three times.

The bank owns a significant amount of bad assets. It systemically underreported the risks and failed to comply with the central bank’s orders to form provision for impairment.

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

(65.8430 rubles – U.S. $1)

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