Russian cbank revokes license from mid-sized Bank Spurt

MOSCOW, Jul 21 (PRIME) -- The central bank has revoked license from Bank Spurt, Russia’s 183rd largest bank by assets for a low quality of assets and an inadequate assessment of risks, the regulator said in a statement on Thursday.

Kazan-based Spurt Bank lost its capital after assessment of the bank’s financial position by the Deposit Insurance Agency (DIA), which the regulator appointed as an interim administrator on April 28, and after an objective valuation of assets in the bank’s financial report.

The bank did not duly diversify assets as the bulk of its credit portfolio financed a large investment project of companies controlled by the beneficiary of the bank, which are now in a critical condition.

The DIA decided that financial recovery of the bank would be economically unsound due to a low quality of assets and a high disparity between assets and liabilities.

The bank is a member of the deposit insurance system, which means that which means that each depositor may receive up to 1.4 million rubles in compensation. The DIA is already redeeming deposits of the bank to its clients through agent banks.

(59.0823 rubles – U.S. $1)

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