UPDATE: Russian cbank revokes license of Moscow’s Gazstroybank

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MOSCOW, Aug 12 (PRIME) -- The central bank has recalled the license of bank Gazstroybank, Russia’s 335th by assets as of August 1, the authority said in a statement on Friday.

The Moscow-based bank conducted highly-risky credit policies, investing in low-quality assets. A proper risk appraisal on request from the central bank and a trustworthy asset price reflection triggered circumstances requiring bankruptcy prevention measures. The bank was also involved in dubious transactions with ghost firms.

The bank is a participant of the deposit insurance system, which means that each depositor will be entitled for redemption of up to 1.4 million ruble deposits.

Deposit repayments to the clients will begin no later than on August 26, the Deposit Insurance Agency (DIA) said in a statement. Repayment agents will be chosen no later than on August 18, the agency said.

(64.9497 rubles – U.S. $1)

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