Russia’s central bank revokes licenses from three banks

MOSCOW, Oct 27 (PRIME) -- Russia’s central bank has revoked banking licenses from Moscow-based Westinterbank, ranked 489th by assets as of October 1, Krasnodar-based Kuban Universal Bank, ranked 377th, and Moscow-based Entuziastbank, ranked 608th, the regulator said Thursday.

Westinterbank did not comply with federal laws on regulation of banking activity and other regulatory acts. It invested money in low-quality assets and failed to properly estimate the risks. The bank’s owners and managers did not take efficient measures to normalize its operations.

Kuban Universal Bank also invested in low-quality assets and failed to create proper reserves against possible loan losses. The bank did not comply with federal laws on regulation of banking activity and created a real threat to interests of creditors and depositors.

Entuziastbank also failed to properly estimate the risks and did not comply with federal laws on regulation of banking activity and regulatory acts for fighting money laundering and terrorism financing.

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 depositors will start no later than on November 10, the Deposit Insurance Agency (DIA) said in a statement.

(62.2597 rubles – U.S. $1)

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