Russian cbank revokes licenses from 2 small banks

MOSCOW, Jul 24 (PRIME) -- The Russian central bank has revoked licenses from two small Moscow based banks AMB Bank and Mosstroyekonombank, also known as M Bank, the authority said in statements published on its Web site on Friday.

AMB Bank, ranked the 186th by its assets, has not complied with banking legislation and central bank’s regulatory acts. Its assets were of a very low quality, which hurt interests of creditors and depositors, and the bank’s management took no measures to normalize the bank’s operations.

M Bank, ranked the 112th, has invested in low-quality assets and failed to create sufficient reserves against possible losses and has not properly evaluated credit risks. The bank also has not complied with banking legislation and central bank’s regulatory acts.

Interim administrations were appointed to both banks.

Both banks are members of the deposit insurance system, which means that each depositor may receive an up to 1.4 million ruble compensation.

(57.3578 rubles – U.S. $1)

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