Russia’s central bank revokes license from small regional bank

MOSCOW, Oct 10 (PRIME) -- The central bank has revoked a banking license from commercial bank Razvitie, ranked 238th by assets as of October 1, the regulator said on Monday.

Registered in the republic of Karachayevo-Cherkessia, the bank did not comply with federal laws on regulation of banking activity and violated the shareholders’ equity requirements.

The bank also conducted a highly risky lending policy connected with placing money in low-quality assets, while its owners and management failed to take efficient measures to normalize the bank’s operations.

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 October 24, the Deposit Insurance Agency (DIA) said.

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