Russian cbank recalls licenses of small St Pete, Ivanovo banks

MOSCOW, Mar 3 (PRIME) -- Russia’s central bank has revoked the licenses from Bankirsky Dom, a St.Petersburg-based bank ranked 422nd by assets as of February 1, and bank Akcia in the city of Ivanovo, ranked 625th, the authority said in a statement on Thursday.

The central bank detected a large cash shortage in Bankirsky Dom. The bank fully lost its capital as a result of forming reserves against possible losses. The bank was also involved in dubious operations, the authority said.

Akcia conducted high risk lending policy by placing money in low-quality assets. An adequate appraisal of the risks and a trustworthy reflection of the asset value of the bank resulted in a situation requiring anti-bankruptcy measures by the central bank.

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) will start repaying deposits to clients of the two banks no later than March 17, it said in a statement.

(73.6256 rubles – U.S. $1)

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