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Russian regulator cancels 4 banking licenses

The Central Bank of the Russian Federation revoked the banking licenses of Vologda Bank, JSC Fora – Opportunity Russian Bank, PJSC Ideya Bank and JSCB MIP (JSC).

The central bank said the lenders had asset-quality issues and pursued high-risk lending policies, failing to set aside adequate loan-loss provisions. The regulator also noted that Vologda Bank tried to disguise its real financial position by providing inaccurate financial reports, while Ideya Bank was involved in suspicious transactions and did not comply with regulations aimed at combating money laundering and the financing of terrorism.

The central bank placed all four lenders into provisional administration until the appointment of a receiver or a liquidator and suspended the powers of their management bodies.

The banks participate in Russia's deposit insurance system, which means that each of their retail deposit holders will be able to obtain up to 1.4 million Russian rubles in compensation on their deposits.

As of Dec. 19, US$1 was equivalent to 61.79 Russian rubles.