Russian cbank revokes licenses from four Moscow banks

MOSCOW, Dec 9 (PRIME) -- The central bank has revoked banking licenses from Moscow-based Vega-Bank, ranked 304th by assets as of November 1, M2M Private Bank, ranked 164th, the International Bank of Development, ranked 423rd, and Russian Financial Alliance (RFA), ranked 545th, the regulator said Friday.

Vega-Bank did not comply with legislation regulating banking activity, the central bank’s regulatory acts, and with laws for fighting money laundering and terrorism financing. The bank also improperly assessed its risks and was involved in dubious transactions.

A banking source said on Wednesday that the central bank disconnected Vega-Bank from its rapid payment system, which is a measure usually preceding license revocation.

M2M Private Bank violated the central bank’s regulatory acts, invested money in low quality assets and failed to create proper reserves against possible risks. The bank failed to timely fulfill its obligations to creditors.

The International Bank of Development also conducted a high risky lending policy by investing money in low quality assets. A poor quality of the bank’s assets did not allow it to generate a sufficient cash flow and made it impossible for the bank to fulfill its obligations to creditors on time.

RFA did not comply with legislation regulating banking activity and the central bank’s regulatory acts, failed to fulfill its obligations to creditors and provide trustworthy financial reports. The bank’s management and owners did not take efficient measures to normalize the bank’s operations.

Vega-Bank, M2M Private Bank, and the International Bank of Development are members of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.

(63.3901 rubles – U.S. $1)

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