Central bank revokes licenses from 2 small Russian banks

MOSCOW, Dec 13 (PRIME) -- Russia’s central bank has revoked a banking license from Ivanovo-based Kranbank, ranked 204th by assets as of December 1, and St. Petersburg-based Nevsky bank, ranked 317th, the regulator said in a statement on Friday.

Kranbank repeatedly violated federal laws regulating banking activities and the central bank’s legal acts, including on money laundering and terrorism financing. It also conducted operations having signs of money stripping.

Nevsky bank fully lost its capital as a result of embezzlement. It also did not comply with federal laws regulating banking activities.

The banks are members 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 in statements that payments to depositors of Nevsky bank and Kranbank will start no later than on December 27.

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