Russia’s central bank revokes licenses from two Moscow banks

MOSCOW, Sep 26 (PRIME) -- The central bank has revoked banking licenses from Moscow-based Defence Industrial Bank (DIB), ranked 89th by assets as of September 1, and Central Commercial Bank, ranked 206th, the regulator said Monday.

DIB did not comply with federal laws on regulation of banking activity and regulatory acts for fighting money laundering and terrorism financing. A proper estimate of credit risks led a complete loss of shareholders’ equity.

In early September, DIB introduced restrictions on opening and replenishment of deposits and, as claimed by clients, restricted deposit payments and money transfers.

Central Commercial Bank also did not comply with federal laws on regulation of banking activity and regulatory acts for fighting money laundering and terrorism financing. It conducted a highly risky lending policy connected with placing money in low-quality assets and was involved in dubious transit operations. The bank’s management and owners did not take efficient measures to normalize its operations.

Both 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 October 10, the Deposit Insurance Agency (DIA) said.

(63.8642 rubles – U.S. $1)

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