UPDATE: Russian cbank revokes license from 2 small Moscow-based banks

MOSCOW, Jun 29 (PRIME) -- The central bank has revoked banking licenses from two small Moscow-based banks Prisko Kapital Bank and Intercredit, as seen by PRIME in the regulator’s materials on Wednesday.

Prisko Kapital Bank, Russia’s 354th largest by assets as of July 1, did not comply with laws that regulate banking operations and violated capital adequacy regulations. The bank conducted a risky lending policy, invested in low-quality assets and lost its capital after forming reserves against risks.

Intercredit Bank, ranked 463rd by assets as of July 1, failed to fulfill liabilities to creditors as it lost liquidity. The bank did not provide reliable reports on its financial situation to the regulator, and its owners and management did not take measures to normalize operations.

Prisko Kapital Bank is a member of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation. The central bank provided no data on Intercredit Bank’s membership in the deposit insurance system.

(64.8095 rubles – U.S. $1)

End