Russian cbank revokes licenses from four small banks

MOSCOW, Dec 19 (PRIME) -- Russia’s central bank has revoked banking licenses from Vologda-based Vologdabank, ranked 429th by assets as of December 1, Moscow-based bank MIR, ranked 381st, Krasnodar-based IDEYA Bank (Idea Bank), ranked 264th, and Nizhny Novgorod-based FORUS Bank, ranked 374th, the regulator said Monday.

Earlier in December, the central bank said it disconnected Vologdabank and MIR from its rapid payment system, which is a measure usually preceding license revocation.

Vologdabank and MIR did not comply with legislation regulating banking activity and the central bank’s regulatory acts and had insufficient shareholders’ equity.

The banks also conducted a high risky lending policy connected with investing money in low quality assets. Vologdabank failed to provide trustworthy financial reports to the central bank.

MIR failed to create proper reserves against possible loans and was involved in dubious transactions. The bank’s managers and owners did not take efficient measures to normalize its operations.

IDEYA Bank also did not comply with legislation regulating banking activity, the central bank’s regulatory acts, and with laws for fighting money laundering and terrorism financing. It conducted a high risky credit policy and created a real threat to interests of creditors and depositors.

FORUS Bank also failed to create adequate reserves against possible loan losses and lost a significant part of its shareholders’ equity. The bank’s managers did not take efficient measures to normalize its operations.

The banks are members of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.

(61.7515 rubles – U.S. $1)

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