UPDATE: Licenses of Russia’s Vneshprombank, 2 small banks revoked

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MOSCOW, Jan 21 (PRIME) -- Russian central bank has revoked banking licenses from Vneshprombank, Omsk-based Miraf-Bank and St. Petersburg’s Turbobank, which were the 40th, 358th and 662nd, respectively, among the country’s banks by the amount of assets as of January 1, the authority said in a statement Thursday.

Vneshprombank’s executives implemented a wide range of schemes including asset stripping. The bank falsified data in its financial reports on a basis of primary documents including abstracts of correspondent accounts of foreign banks, clients’ credit profiles and account transactions, and did not timely report on transactions subject to obligatory central bank’s control, the authority said.

The gap between the value of assets of the bank and its liabilities was 187.4 billion rubles, which is why the central bank thought it unreasonable to set the bank for a bailout.

Miraf-Bank invested in low-quality assets and did not create enough reserves against the risks. The bank did not fulfill the liabilities to creditors timely, submitted inaccurate reports and did not timely report on transactions subject to obligatory central bank’s control, the authority said.

Turbobank was involved into large transactions including money transfer to shady firms and it did not timely submit high-quality information to the central bank, it said.

All three banks are members of the deposit insurance system, which means that each depositor will receive redemption of up to 1.4 million rubles.

The Deposit Insurance Agency (DIA) said that repayment of deposits to clients of Miraf-Bank and Turbobank will begin no later than on February 4.

(79.4614 rubles – U.S. $1)

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