UPDATE: Russian cbank revokes licenses from four small banks

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MOSCOW, Jul 3 (PRIME) – Russia’s central bank has revoked licenses from three small Moscow-based banks, namely Bank Klientsky, Stary Kreml (Old Kremlin) and Gagarinsky Bank, and Krasnodar-based Bank ENO, the regulator said in a statement Friday.

Bank Klientsky inadequately appraised its loan portfolio and taken risks and did not comply with the regulator’s instructions aimed at limiting the bank’s operations.

Bank Gagarinsky conducted a highly risky credit policy and failed to create adequate reserves against possible losses for loans.

Bank ENO invested in low-quality assets and also failed to create adequate reserves against possible loan losses.

All the four banks did not comply with legislation prohibiting money laundering and terrorism financing, the regulator said.

As of June 1, Bank Klientsky ranked 200 in terms of assets, while Stary Kreml ranked 735, Gagarinsky Bank ranked 384, and Bank ENO ranked 759.

All the four banks are members of the deposit insurance system, which means that each depositor may receive an up to 1.4 million ruble compensation.

Payments to the banks’ depositors will start no later than on July 17, the Deposit Insurance Agency (DIA) said.

(55.6555 rubles – U.S. $1)

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