Central Bank of Russia pulls one, cancels two more bank licenses
MOSCOW. Dec 6 (Interfax) - The Central Bank of Russia (CBR) has revoked or canceled the licenses of three banks - Moscow-based JSC Zlatkombank and Economics-Bank LTD, and Krasnodar-based Cdbbank - effective December 6, the regulator said in press releases.
JSC Zlatkombank was Russia's 395th largest bank by assets at the end of Q3 2018, according to the Interfax-100 ranking prepared by the Interfax Center for Economic Analysis. Economics-Bank ranked 408 and Cdbbank ranked 459. The Central Bank of Russia (CBR) itself ranked Cdbbank 469 by assets as of November 1.
All three banks are part of the deposit insurance system.
JSC Zlatkombank has gone into temporary administration pending the appointment of a receiver of liquidator. A liquidation commission will be appointed to each of Economics-Bank LTD and Cdbbank.
As JSC Zlatkombank has consistently underestimated credit risk assumed, the Bank of Russia has repeatedly requested that it create additional loan loss provisions. The credit institution's operations were found to be non-compliant with the law and Bank of Russia regulations on countering the legalization (laundering) of criminally obtained incomes and the financing of terrorism with regard to the timeliness, completeness and reliability of information provided to the authorized body about operations subject to mandatory control. Besides, JSC Zlatkombank was involved in dubious transit operations and transactions aimed at withdrawing funds overseas and/or converting them into cash, the regulator said.
The Bank of Russia has repeatedly - four times over the last 12 months - applied supervisory measures against JSC Zlatkombank, including two restrictions and one ban on household deposit taking.
The CBR said the credit institution's operations showed signs of misconduct by its executives who sought to withdraw liquid assets to the detriment of creditors' and depositors' interests. The Bank of Russia will submit information about the bank's transactions suggesting a criminal offence to law enforcement agencies.
The Bank of Russia cancelled Economics-Bank LTD' banking license following the decision of the credit institution's authorized body to terminate its activity through liquidation. Based on reporting data provided to the Bank of Russia, the credit institution's assets are sufficient to satisfy creditors' claims.
The Bank of Russia also cancelled Cdbbank's license following the decision of its authorized body to terminate its activity through voluntary liquidation. Based on the reporting data provided to the Bank of Russia, the credit institution's assets are sufficient to satisfy creditors' claims.