Russian cbank revokes licenses from two Moscow-based banks

MOSCOW, May 27 (PRIME) -- Russia’s central bank has revoked banking licenses from Moscow-based Bank of Development of Technologies, ranked 387th by assets as of May 1, and EuroAxisBank, ranked 456th, the regulator said in a report on Friday.

Bank of Development of Technologies did not comply with the central bank’s regulatory acts, invested money in low-quality assets, failed to create adequate loan loss reserves and eventually completely lost its shareholders’ equity. Its owners and management did not take efficient measures to normalize the bank’s operations.

EuroAxis Bank did not comply with the central bank’s regulatory acts and failed to fulfill obligations to creditors on time.

Both banks are members of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation. Payments to depositors will start no later than on June 10, the Deposit Insurance Agency (DIA) said.

(65.2062 rubles – U.S. $1)

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