Russian central bank withdraws license from bank Rublev

MOSCOW, Jun 27 (PRIME) -- The Russian central bank has recalled a banking license from bank Rublev, ranked 176th by assets as of June 1, the authority said in a statement on Wednesday.

The business model of the bank was focused on borrowing from households and placement of the money in low quality assets. Formation of reserves adequate to the risks, as requested by the central bank, led to a full loss of the capital by the bank.

Bank Rublev is a participant of the deposit insurance system, which means that the depositors will receive up to 1.4 million ruble compensations.

(62.7908 rubles – U.S. $1)

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