Russian cbank revokes licenses from two small banks

MOSCOW, Dec 21 (PRIME) -- Russia’s central bank has revoked banking licenses from Moscow-based Russobank, ranked 268th by assets as of December 1, and Rostov-on-Don-based Donkhlebbank, ranked 298th, the regulator said Friday.

Russobank did not comply with federal laws regulating banking activities and the central bank’s legal acts, including on money laundering and terrorism financing.

The bank was involved in dubious transit operations. The majority of these operations were related with shadow sales of cash revenue by retailers to third parties and withdrawal of funds abroad.

Donkhlebbank focused on financing construction projects of the group of companies belonging to the bank’s major owner. Due to difficulties with implementation of a number of these projects the bank had a significant volume of troubled assets on its balances.

A proper estimate of credit risks revealed a significant reduction of the bank’s shareholders’ equity.

The central bank uncovered signs of unscrupulous actions of the bank’s management to withdraw liquid assets with damage to interests of the creditors and depositors.

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

(67.3710 rubles – U.S. $1)

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