UPDATE: Cbank says BFG-Credit Bank’s capital gap at 40 bln rbl

(Provides new headline, adds details in first two paragraphs)

MOSCOW, Jul 27 (PRIME) -- The gap between assets and liabilities of BFG-Credit Bank, Russia’s 99th largest by assets as of July 1, amounted to no less than 40 billion rubles under preliminary estimates, a representative of the central bank told PRIME on Wednesday.

The final estimate will be made by a provisional administration.

Earlier in the day, the central bank revoked a banking license from BFG-Credit Bank.

In April, the central bank introduced a provisional administration at Moscow-based BFG-Credit Bank for six months. Later, the regulator imposed a 3-month moratorium on redemption of BFG-Credit Bank’s liabilities to creditors. In May, the Deposit Insurance Agency (DIA) said it will redeem around 22 billion rubles to about 44,800 depositors of the bank.

BFG-Credit violated central bank’s regulatory ratios, as its capital adequacy ratio fell to below 2% and shareholder equity fell below the capital figure. The bank did not duly estimate its risks and lost its equity after proper risk assessment and reflection of asset costs in its report.

The disparity between the bank’s liabilities and assets left no possibility of a financial bailout by the DIA, the central bank said, adding that the agency continues redemption of deposits to the bank’s clients.

(65.7408 rubles – U.S. $1)

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