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MOSCOW, Apr 28 (PRIME) -- Russia’s central bank has revoked a license from small banks Sibes Bank, International Construction Bank (ICB), and Vladprombank from April 28, the regulator said in a statement on Friday.
The risks of Sibes Bank, Russia’s 352nd largest by assets as of April 28, connected to refinancing of debts of individuals and sham deals with rights for claims on consumer loans purchased from microfinancing organizations, were at a critically high level. The authority discovered that the bank, located in the Siberian city of Omsk, carried out sham asset swaps to cover a significant cash deficiency and a real financial situation of the bank.
The bank’s management conducted fraudulent activities, withdrew money from the bank, manipulated financial data, and ignored demands of the central bank to form reserves adequate to risks against possible losses. In 2017, Sibes Bank’s business was aimed at shady transit operations of clients with an insignificant debt burden, the central bank said.
Vladimir-based Vladprombank, 287th largest bank by assets as of April 1, conducted shady operations, including operations with accounts of companies connected with deals in precious metals. The regulator repeatedly asked the bank to eliminate some operations that serviced the shadow market, but the bank did not do that.
The problems of Moscow-based IBC, 423rd largest bank as of April 1, happened due to a risky business model and a low quality of the bulk of assets due to provision of loans to companies that show signs of no real commercial activity. The bank’s management withdrew assets from the bank hurting interests of creditors and implemented schemes to cover up the real level of credit risks.
Sibes Bank and Vladprombank are members of the deposit insurance system, which means that the depositors will be entitled for up to 1.4 million rubles in compensation.
The Deposit Insurance Agency said in a statement that redemption to depositors of Vladprombank and Sibes Bank will be started no later than on May 12, and the agency will choose agent banks that will carry out the redemption no later than on May 5.
(56.9707 rubles – U.S. $1)
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