UPDATE: Russian cbank revokes license from two small banks

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MOSCOW, Jul 20 (PRIME) -- Russia’s central bank has revoked banking licenses from Tagilbank, based in the Sverdlovsk Region city of Nizhny Tagil and ranked 409th by assets as of July 1, and Rostov-on-Don-based South Regional Bank, ranked 487th, the regulator said on Friday.

Tagilbank did not comply with federal laws regulating banking activities and the central bank’s legal acts and posed a real threat to interests of its creditors and depositors.

The bank’s operations were loss-making for a long period due to low efficiency of its business model.

The bank’s owners and managers did not take efficient measures to normalize its operations.

South Regional Bank repeatedly violated the central bank’s law on money laundering and terrorism financing and failed to properly estimate its credit risks. The bank’s owners and managers did not 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 depositors will start no later than on August 3, the Deposit Insurance Agency (DIA) said.

(63.2746 rubles – U.S. $1)

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