Central Bank of Russia pulls three licenses
MOSCOW. July 7 (Interfax) - The Central Bank of Russia has revoked the licenses of two St. Petersburg-based banks, Fininvest and Eurosib Bank, and of one Moscow-based bank, EastCom Bank, the Central Bank said in statements.
The licenses were revoked on July 7.
All the banks were put into temporary administration.
Fininvest had its license revoked due to its failure comply with federal banking laws and Bank of Russia regulations, submission of inaccurate reporting data and pursuit of a high-risk policy of investing cash funds in low-quality assets, the Central Bank said. The bank did not create adequate loss provisions and did not submit reporting data that reflected its true financial state.
Eurosib Bank had its license withdrawn because it conducted a high-risk credit policy and did not create adequate provisions; nor did it take the necessary measures to normalize its operations.
EastCom Finance lost its license because it is not capable of meeting the claims of creditors and has submitted inaccurate reporting data. Management did not take the necessary measures to normalize the bank's operations.
All three banks are part of the deposit insurance system.
Fininvest was Russia's 186th largest bank by assets, according to the Interfax-100 ranking at the end of H1 2014. Eurosib was ranked 625 and EastCom Finance - 694.
