Russian Central Bank revokes licenses from three banks

The Russian Central Bank has revoked a license from the NZBank, the Bank Metropol and the OLMA-Bank, the regulator said in a statement.

The NZBank did not comply with legislation regulating banking activity, the central bank’s regulatory acts, and with laws for fighting money laundering and terrorism financing. The bank also improperly assessed its risks and lost its capital after an appropriate estimation of risks.

The Bank Metropol also did not comply with legislation regulating banking activity, placed money in low-quality assets and failed to estimate risks from these operations properly. During implementation of the central bank’s orders on provision of reserves against possible losses, the bank has repeatedly showed signs of insolvency. The bank was also involved in shady operations.

The OLMA-Bank’s equity has been lower than defined by the banking regulation as least for three months in a row and the bank did not request the central bank to change its status to a non-banking credit institution, PRIME reports.

All three banks are members of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation.