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Russian regulator withdraws Bank Master-Capital's license

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Russian regulator withdraws Bank Master-Capital's license

The Russian central bank revoked the banking license of Joint Stock Commercial Bank Master-Capital and placed the lender into provisional administration until the appointment of a receiver or a liquidator.

The regulator said the bank's activities were focused on lending to borrowers affiliated with the ultimate beneficiaries of the bank, which resulted in the accumulation of a significant amount of nonperforming assets on its balance sheet. A due diligence check of the lender, carried out at the regulator's request, uncovered a substantial loss of capital, which threatened the interests of creditors and deposit holders.

Bank Master-Capital is a member of the Russian deposit insurance system, meaning that retail deposit holders are set to receive compensation of up to 1.4 million Russian rubles each for deposits held at the lender.

As of Feb. 19, US$1 was equivalent to 56.35 Russian rubles.