Russian cbank revokes licenses from 2 small Moscow-based banks

MOSCOW, Jul 21 (PRIME) -- Russia’s central bank has revoked banking licenses from two small Moscow-based banks, Bank Strategy, ranked 209th by assets as of July 1, and Bank ABB, ranked 621st, the regulator said in a statement Thursday.

Bank Strategy did not comply with federal laws on regulation of banking activity and violated the central bank’s regulatory acts and capital adequacy ratios. The bank inappropriately estimated its risks due to poor quality of assets, and lost shareholders’ equity after proper estimation of risks under demand from the central bank.

Bank ABB did not comply with federal laws on regulation of banking activity and with laws prohibiting money laundering and terrorism financing. The bank conducted highly risky lending policy, did not create adequate reserves against possible losses, and was involved in shady transaction operations.

Bank Strategy 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 depositors of the bank will start no later than on August 4, the Deposit Insurance Agency (DIA) said in a statement.

(63.4183 rubles – U.S. $1)

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