The Central Bank of Russia has withdrawn the licenses of Smolensk-based Askold Bank and Moscow-based Rublyovsky Commercial Bank with effect from December 24, the Central Bank said in a statement. Askold, Russia’s 514th largest bank by assets, according to the Interfax ranking as of December 1, is a subsidiary of Samara-based Smolensky Bank, which recently had its license revoked.system.
Askold, for which the Deposit Insurance Agency (DIA) is responsible for some 1.5 billion rubles in personal deposits, did not have enough provisions for the risks it assumed when depositing funds with Bank Smolensky, the Central Bank said.
All of Askold’s equity evaporated after it fulfilled orders to create provisions, and the bank effectively ceased to function in the middle of December.
The bank’s management and owners did not take measure to rejuvenate the bank.
The DIA said it would start compensating depositors not later, given the upcoming New Year holidays, and would select a bank agent by December 30.
The Central Bank said Bank Rublyovsky, ranked 669 by assets, was involved in dubious operations and was unable to honor its obligations to creditors due to liquidity losses.
The bank pursued a high-risk credit policy and did not create adequate provisions for loan-losses and other impairment.
The Central Bank said the bank’s owners and management did not take adequate measures to rejuvenate it financially.
Rublyovsky is not part of the deposit insurance system