UPDATE: Cbank cuts Rosenergobank off payment system, bank denies

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MOSCOW, Mar 27 (PRIME) – The central bank has disconnected Rosenergobank, Russia’s 88th largest bank by assets as of March 1, from its rapid payment system which is a measure often preceding license revocation, a banking source told PRIME on Monday, but Rosenergobank denied the information.

In mid-February, international rating agency Moody’s downgraded long-term deposit ratings of the bank in national and foreign currencies to Caa2 with a negative outlook. The agency said that liquidity position and asset quality of the bank had worsened.

Previously, the bank refused to publish its reports on compliance with regulatory ratios for September and October 2016. Also in October, the bank terminated liabilities on 1.5 billion rubles worth of subordinate instruments to restore its tier-1 capital adequacy ratio. According to a register of arbitration proceedings, Rosenergobank also filed a suit against the central bank after it ordered the bank on March 9 to form additional reserves against loans granted to 43 borrowers.

According to a financial report of the bank, households keep 36.5 billion rubles on deposits with Rosenergobank.

(57.4247 rubles – U.S. $1)

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