Russian Regulator Closes Down Two More Banks

2013/12/23

MOSCOW, December 24 (RIA Novosti) - Russia's central bank said Tuesday it had revoked the operating licenses of two small commercial banks, the latest in a string of enforced closures by the regulator.


Moscow-based Rublyovsky, ranked 662nd among Russian banks, was stripped of its license for breaching financial regulations, according to Bank Rossii. Also closed down was Askold, ranked 511th, a subsidiary of the larger Smolensk Bank that was stripped of its license earlier this year.


The closures are part of a drive by the authorities to crack down on financial irregularities in the banking sector among small and mid-sized banks, many of which are little more than corporate treasuries.


In November the central bank revoked the license of major Moscow-based lender Master Bank, causing widespread problems with card payment transactions across the country.


Elvira Nabiullina, who was appointed as chairman of Bank Rossii in June, has made a campaign against shadowy banking activity a key part of her agenda for the regulator. Earlier this year she threatened to close down those banks breaking the rules without advance warning.



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