UPDATE: RussiaТs cbank revokes license from small Saratov bank
(Adds details in last paragraph)
MOSCOW, Jan 24 (PRIME) -- RussiaТs central bank has revoked a banking license from Saratov-based Nizhnevolzhskiy Commercheskiy Bank, or NVKbank, ranked 179th by assets as of January 1, the regulator said on Friday.
The bank numerously violated federal laws regulating banking activities and the central bankТs legal acts.
The bank also systematically underestimated the amount of reserves for possible losses on loan debt, thus hiding its real financial situation.
The reflection in the financial statements of the accepted credit risks at the request of the central bank revealed a significant (over 80%) decrease in the capital of the credit institution, which is a real threat to the interests of its creditors and depositors.
NVKbank is a member of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.
Payments to the bankТs depositors will start no later than on February 7 and may amount to around 8.5 billion rubles, the Deposit Insurance Agency (DIA) said.
(61.9515 rubles Ц U.S. $1)