UPDATE: Cbank revokes licenses from two small Moscow banks

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MOSCOW, Jul 10 (PRIME) -- The central bank has revoked banking licenses from Moscow-based Premier Credit Bank, Russia’s 369 largest by assets as of June 1, and Stal Bank, ranked 527 by assets, the regulator said on Monday.

Premier Credit Bank did not comply with federal laws on regulation of banking activity and the central bank’s regulatory acts. The bank had a low quality of assets and conducted a highly risky lending policy, which posed a real threat to its creditors and depositors. Due to a liquidity loss, the bank was not able to timely fulfill obligations to creditors, the regulator said.

Stal Bank led a risky business model and failed to properly estimate its loan portfolio. The adequate estimate of loan risks revealed a significant reduction of the bank’s shareholders’ equity. The bank’s owners and management did not take efficient measures to normalize its operations.

Both banks are members of the deposit insurance system, which means that which means that each depositor may receive up to 1.4 million rubles in compensation. Payments to depositors will start no later than on July 24, the Deposit Insurance Agency (DIA) said.

(60.3792 rubles – U.S. $1)

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