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Russian regulator revokes 2 banking licenses

The Central Bank of the Russian Federation withdrew licenses held by Commercial Bank Anelik RU (LLC) and Chelyabinsk-based Bank for Social Development Reserv, and placed the lenders into provisional administration until the appointment of a receiver or a liquidator.

Anelik, which served as a settlement center for one of the local payment system operators, repeatedly violated Russian legislation on preventing money laundering and financing of terrorism and was involved in dubious financial operations, the regulator said.

Meanwhile, Reserv Bank carried out operations associated with high credit risks and was asked a number of times by the regulator to set up additional loan loss provisions. After the required loan loss provisions were finally created, the capital level of the lender dropped significantly, prompting the central bank to revoke its license. Reserv was also involved in operations aimed at replacing its high-quality liquid assets with dubious ones and tried to conceal the loss of a considerable amount of funds.

Both banks are members of the Russian deposit insurance system, and its retail clients are set to receive compensation of up to 1.4 million Russian rubles each for deposits held at the lenders.

As of Aug. 8, US$1 was equivalent to 59.89 Russian rubles.