Russian central bank recalls license of Bank Assotsiatsiya

MOSCOW, Jul 29 (PRIME) -- The central bank has revoked the banking license of Nizhny Novgorod–based Bank Assotsiatsiya, Russia’s 170th largest bank by assets of June 1, the regulator said in a statement on Monday.

During oversight procedures, the regulator discovered a loss of 3.8 billion rubles placed with a foreign bank. The sum exceeds the bank’s capital by more than two times, and creation of reserves against the absent assets led to a complete loss of capital.

Bank Assotsiatsiya is a member of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.

The Deposit Insurance Agency (DIA) said that payments to the clients of the bank will start no later than August 12, and that the agency will choose agent banks that would conduct the payments no later than August 1.

(63.1271 rubles – U.S. $1)

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