Russia’s Central Bank Revokes Licenses Including My BankJason Corcoran
Russia’s central bank shut down Moscow-based lenders My Bank and Priroda Bank as it accelerated an industry cleanup, according to statements on its website.
The regulator said it also revoked the licenses of two regional non-bank credit organizations, OOO RNKO Traditsiya and OAO NDKO MTSM.
My Bank, a top 200 lender by assets, had its license canceled because of “significant misreporting of data and inability to meet creditors’ obligations,” according to a central bank statement. Priroda Bank was cited for involvement in “suspicious transactions” and not providing sufficient reserves for possible loan losses, the central bank said in separate statement.
The central bank has accelerated its crackdown since Nov. 29 when it revoked the license of Master-Bank, Russia’s 41st largest lender by assets, for money-laundering violations. Mid-size lenders Project Financing Bank and Smolensky Bank were also shut on Dec. 13, and Investbank was closed after failing capital-adequacy reviews.
The central bank has revoked about 35 banking licenses since July 1 when Elvira Nabiullina succeeded Sergey Ignatiev as governor, compared with three in the first half of 2013. Nabiullina is striving to tighten regulation of banks and curtail net capital outflow that was forecast at about $55 billion last year.
Calls to My Bank and Priroda Bank weren’t returned, and My Bank’s website was redirected to the Deposit Insurance Agency.
Customers of My Bank, which is a member of the Deposit Insurance Agency, are entitled to a repayment of 700,000 rubles ($19,900), according to a statement on its website.
Nabiullina said she doesn’t have a “black list” of Russian banks she plans to shut down.
“Withdrawing a license is always a measure of last resort for the central bank,” she said Jan. 28 on Russia’s Channel One TV. “We will always work with a bank first.”