Central Bank revoked licenses from Russlavbank, Regional Development bank, Regional Bank of Savings and Mezhregionbank

As per 10 November, Central Bank of Russia has revoked licenses for banking operations from RSB24 (Russlavbank, registration No 1073), Regional Development bank (registration No 2782), Regional Bank of Savings (registration No 3367) and Mezhregionbank (registration No 1059), the regulator's press service reported.

According to Central Bank, the decision on revocation of licenseswas made in connection with non-compliance by these credit organizations of federal laws regulating bank activity, and also regulations of the Bank of Russia.

PSB24 wasconductingariskycreditpolicyand did not form sufficient reserves to cover possible losses on loans and other assets.The bank did not comply with the law on countering legalization of funds that were obtained illegally or served for criminal purposes.According to the regulator, the bank was involved in conducting questionable transactions of large amounts of money.

Regional Development Bank was making investments in low-quality assets and did not form reserves adequate to risk-taking. Due to the unsatisfactory quality of the assets which weren't generating a sufficient cash flow, the bank didn't provide timely fulfilment of obligations to creditors.

The quality of assets of Regional Bank of Savings was held to be inadequate. The reasonable assessment of credit risks on request of supervisionagency revealed full loss of bank's own funds, stated in the report of the Central Bank.

Mezhregionbankwasconductingariskycreditpolicy connected with investments in low-quality assets. As a result of execution of requirements of supervisory authority on formation of reserves adequate to risk-taking, the bank completely lost its own funds, notes the regulator.

Allfourbanks are the members of the deposit insurance system. Insurance payouts to depositors will begin no later than November 24, said the public relations department of the Deposit Insurance Agency.