The central bank of Russia has decided to withdraw the licence of Russian mid-sized lender Probusinessbank for failing to comply with minimum capital requirements, according to Reuters.
According to the central bank, the capital gap was created as Probusinessbank "carried out a high-risk policy connected with placing its monetary means in low-quality assets."
Go deeper with GlobalData
The central bank deputy chairman Mikhail Surkov said that the Russian lender’s liabilities exceeded its assets by at least RUB67bn ($1.04bn).
"The hole was caused by the presence at the bank of various financial assets that had signs of being fictitious," Surkov was quoted as saying by the news agency.
As per the second-quarter accounts, Probusinessbank managed about RUB27bn ($420m) in retail accounts and deposits.
The cancellation of Probusinessbank’s license comes in the face of an economic contraction in Russia created due to low oil prices and Western sanctions over the Ukraine crisis, in turn resulting in deterioration in banks’ assets.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
