Russian cbank revokes licenses from two small banks
MOSCOW, Aug 5 (PRIME) -- The Russian central bank has revoked licenses from St. Petersburg-based Constans-Bank, ranked 387th by assets as of July 1, and Vologda-based Industrial Energetic Bank, or Promenergobank, ranked 364th, the regulator said on Friday.
Constans-Bank did not comply with federal laws on regulation of banking activity and violated the central bank’s regulatory acts, and its capital adequacy ratio fell below 2%. The creation of reserves for possible loan losses led to a complete loss of the bank’s shareholders’ equity.
The bank was also involved in dubious transit transactions, while its managers and owners did not take efficient measures to normalize its operations.
Promenergobank conducted a highly risky lending policy by investing money in low-quality assets. Due to a liquidity loss, the bank failed to timely fulfill its obligations to creditors.
Both banks are members of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.
(66.3941 rubles – U.S. $1)
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