UPDATE: Cbank revokes licenses from small Samara, Moscow banks

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MOSCOW, Mar 29 (PRIME) -- The Russian central bank has revoked banking licenses from Samara-based ActiveCapital Bank (AC Bank), ranked 117th by assets as of March 1, and Moscow-based LightBank, ranked 425th, the regulator said on Thursday.

AC Bank did not comply with federal banking regulations and the central bank’s regulatory acts, including aimed at prevention of money laundering and terrorism financing, and posed a real threat to interests of creditors and depositors.

In March, AC Bank made a number of transactions aimed at withdrawal of a significant part of assets, which sharply worsened the bank’s financial state and led to a major deficit of liquidity and inability to timely fulfill obligations to clients, the regulator said. The bank’s owners and managers did not take efficient measures to normalize its operations.

LightBank used a highly risky business model connected with lending to individual clients and failed to properly estimate the quality of its loan portfolio. The proper evaluation of lending risks uncovered a significant decrease in shareholders’ equity of the bank and grounds to take measures to avoid bankruptcy, which created a real threat to interests of creditors and depositors. The bank’s owners and managers failed to 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 the depositors will start no later than on April 12, the Deposit Insurance Agency (DIA) said.

(57.5598 rubles – U.S. $1)

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