UPDATE3: Russian cbank revokes license from Rostov-on-Don bank
(Adds details in paragraph 5)
MOSCOW, Mar 15 (PRIME) -- The Russian central bank has revoked a banking license from commercial bank Kredit Express based in the city of Rostov-on-Don, ranked 372nd by assets as of March 1, the regulator said on Thursday.
The bank did not comply with federal banking regulations and the central bankТs regulatory acts, including aimed at prevention of money laundering and terrorism financing, and posed a real threat to interests of creditors and depositors.
The proper evaluation of lending risks uncovered a significant decrease in shareholdersТ equity of the bank and grounds to take measures to avoid bankruptcy, but the bankТs owners and managers did not take efficient measures to normalize its operations.
Kredit Express 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 the bankТs depositors will start no later than March 29, the Deposit Insurance Agency (DIA) said in a statement.
Maxim Osadchy, director of the research department at Corporate Finance Bank, said that the agency may pay a total of 1.4 billion rubles to depositors of Kredit Express.
The central bank also said it annulled a banking license of Belgorod-based Velton Bank, ranked 500th by assets as of March 1, due to a voluntary liquidation decision. The bank is also a member of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.
The DIA said in a statement that payments to the bankТs depositors will start no later than March 29 and agent banks will be chosen no later than March 21.
(56.9372 rubles Ц U.S. $1)