Russian central bank revokes license from small bank

MOSCOW, Jun 21 (PRIME) -- Russia’s central bank has revoked a banking license from the Leningrad Region-based Ruscobank, ranked 256th by assets as of June 1, the regulator said on Tuesday.

The bank conducted a high risk credit policy by investing money in low-quality assets and did not comply with the central bank’s regulatory acts for fighting money laundering and terrorism financing. Adequate estimation of the bank’s risks has led to a significant reduction of its shareholders’ equity.

The bank is a member 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 July 5, the Deposit Insurance Agency (DIA) said.

(64.1509 rubles – U.S. $1)

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