Russian central bank recalls license from bank Finansovy Kapital
MOSCOW, Oct 25 (PRIME) -- Russia’s central bank has canceled a license of bank Finansovy Kapital, ranked 512nd by assets as of October 1, the authority said in a statement on Tuesday.
The St. Petersburg-based bank did not fulfill federal laws regulating the banking activities and regulative acts of the central bank, and repeatedly violated requirements envisaged by the law on money laundering and terrorism financing.
Finansovy Kapital conducted a high-risk credit policy including investments in low quality assets. After formation of reserves against loan losses, as requested by the central bank, Finansovy Kapital found itself in a state requiring bankruptcy prevention measures. The bank was unable to fulfill creditor demands due to a low quality of assets, not generating enough cash flow; it also did not submit reports containing information on operations subject to obligatory control of the central bank timely.
The bank is a participant of the deposit insurance system, which envisages compensations to depositors amounting to up to 1.4 million rubles. The Deposit Insurance Agency will start payments to the bank’s depositors no later than November 8, the agency said in a statement.
(62.2349 rubles – U.S. $1)
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