Russia’s central bank revokes licenses from three banks

MOSCOW, Sep 19 (PRIME) -- The central bank has revoked banking licenses from Moscow-based Rosinterbank, ranked 68th by assets as of September 1, Finprombank, or FPB Bank, ranked 94th, and the Ulyanovsk Region-based Regional Commerce Bank (RCB), ranked 404th, the regulator said Monday.

Rosinterbak did not comply with federal laws on regulation of banking activity and regulatory acts for fighting money laundering and terrorism financing. The bank inappropriately estimated its risks due to poor quality of assets and lost shareholders’ equity after proper estimation of risks under demand from the authority.

On September 15, the bank stopped providing services to its clients, and the central bank mandated the Deposit Insurance Agency (DIA) to temporarily run the bank.

FPB Bank failed to timely fulfill its obligations to creditors due to a poor quality of assets, which did not generate a sufficient cash flow. The bank also did not comply with federal laws regulating the banking activity.

The bank said earlier its shareholders will meet on October 14 to discuss liquidation of the bank and sending a request to the central bank to annual or revoke its banking license.

RCB did not comply with federal laws on regulation of banking activity and regulatory acts for fighting money laundering and terrorism financing. The bank inappropriately estimated its risks, while management and owners did not take efficient measures to normalize the bank’s operations.

The three banks are members of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation. Payments to the bank’s depositors will start no later than on October 3, the DIA said.

(64.9940 rubles – U.S. $1)

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