(Adds details in paragraph 7)
MOSCOW, Jul 3 (PRIME) -- Russia’s central bank has revoked a banking license from St. Petersburg-based Bank Sovetsky, ranked 111th by assets as of June 1, the regulator said on Tuesday.
The central bank also approved a plan with participation of the Deposit Insurance Agency (DIA) envisaging an auction to sell the bank to a credit organization which will continue rendering bank services to Bank Sovetsky’s clients on previous terms and settle its obligations.
The DIA said it will hold the auction in the next two weeks and will announce the results no later than on July 16. Insurance payments to self-employed entrepreneurs will begin no later than on July 17.
Central Bank Deputy Chairman Vasily Pozdyshev said that individual accounts at Bank Sovetsky will be transferred to a new bank while self-employed entrepreneurs will obtain their money deposited in the bank fully in the form of insurance compensation from the DIA.
“For individuals, it will happen automatically, they will not need to make new agreements, and the servicing terms will remain unchanged… The new bank will certainly have offices in all regions of presence of Bank Sovetsky,” he said.
“Self-employed entrepreneurs will receive their money fully via the DIA. The bank had no clients of this type with deposits surpassing the insured sum of 1.4 million rubles.”
A central bank representative the told PRIME that further bankruptcy prevention measures for the bank would become too costly without a guaranteed result. The authorities will transfer about 37 billion rubles of liabilities of Bank Sovetsky to a creditor bank, the representative said.
Bank Sovetsky is a member of the deposit insurance system, which envisages that each depositor may receive up to 1.4 million rubles in compensation.
(63.1394 rubles – U.S. $1)
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