MOSCOW: Russia's central bank revoked the banking licence of mid-sized Intercommerz bank on Monday for failing to meet capital requirements and inadequately evaluating risks.
As part of its campaign to clean up the banking sector, the central bank has been withdrawing licences on a nearly daily basis, mainly from smaller lenders.
In January, though, it revoked the licence of Vneshprombank, one of Russia's top 50 banks by assets that had around 70 billion roubles ($915 million) in retail deposits.
Intercommerz, Russia's No. 67 bank by assets and No. 34 by retail deposits, failed to assess risks adequately and was involved in "dubious transit operations", the central bank said on Monday.
Intercommerz did not immediately return calls seeking comment. It published a copy of the central bank's statement on its website.
The withdrawal of a banking licence from an institution normally means depositors are unable to access their money.
However, the government guarantees 1.4 million roubles per retail depositor per bank through the Deposit Insurance Agency.
Over the last three years, the state has spent around 600 billion roubles to compensate depositors of defunct banks.
Comments
Comments are closed.