Russian cbank revokes licenses from two small banks

MOSCOW, Oct 25 (PRIME) -- Russia’s central bank has revoked banking licenses from Yekaterinburg-based Uraltransbank, ranked 196th by assets as of October 1, and Moscow-based bank Soyuzny, ranked 239th, the regulator said on Thursday.

Uraltransbank did not comply with federal laws regulating banking activities and the central bank’s legal acts.

The bank systematically underestimated the amount of accepted credit risk, while a proper estimate of risks revealed a significant reduction of shareholders’ equity.

Due to worsening of the quality of its assets, the bank had to create additional reserves against possible losses and fully lost its shareholders’ equity.

Soyuzny also did not comply with federal laws regulating banking activities and the central bank’s legal acts, including on money laundering and terrorism financing, and failed to properly estimate its risks.

The 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 November 8, the Deposit Insurance Agency (DIA) said.

(65.6299 rubles – U.S. $1)

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