The central bank of Russia has revoked the licenses of Intercommerz and Alta-Bankas part of the government’s strategy to consolidate the banking sector.
Intercommerz was shut down as it failed to evaluate risks properly despite the poor quality of its assets, the central bank said in a statement. The bank, which is the country’s 67th lender by assets, also engaged in dubious operations.
Alta-Bank had failed to meet its obligations to creditors, the central bank added. The bank ranked as Russia’s 186th bank by assets.
In the recent times, the Russian government has been trying to steer clear of fragile banks in the country which are found to implement abusive practices. It withdrew licenses of nearly 100 banks last year as part of this move.
In January 2016, it revoked the license of Vneshprombank, the nation’s 40th biggest bank by assets, and announced it insolvent.