Russian Central Bank revokes licenses of two Moscow banks

The Russian Central Bank made a decision to recall the banking licenses of the Moscow Time Bank and the United Bank of Industrial Investments (UBII), the press service of the Central Bank said.

According to the statement, UBII invested funds into poor-quality assets and failed to create provisions appropriate for assumed risk. The credit institution failed to timely honor its commitments to creditors due to the unsatisfactory quality of assets. The Central Bank also said that UBII presented reports with material misstatements to the supervising authority

The Central Bank said Time Bank pursued a risky credit policy and did not establish appropriate provisions for possible losses under loans. The bank was also involved in doubtful transfer operations on cash withdrawals abroad in huge amounts.

Both banks take part in the deposit insurance system.