Central bank revokes license from small Moscow bank

MOSCOW, Oct 2 (PRIME) -- Russia’s central bank has revoked a banking license from Moscow-based Commercial Fuel and Energy Interregional Bank for Reconstruction and Development, or Tembr-Bank, ranked 186th by assets as of September 1, the regulator said on Friday.

The bank violated federal laws regulating banking activities and legal acts of the regulator, including underestimating the amount of reserves required for the formation of reserves for possible losses.

The central bank also cancelled Tembr-Bank’s license for operations on the stock market saying that the bank operated in a corporate conflict.

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 October 16 and may amount to around 5 billion rubles, the Deposit Insurance Agency (DIA) said.

(77.2774 rubles – U.S. $1)

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