-Russia's c-bank takes licences of Rusich Centre Bank, Bank Ratibor.
BANKING AND CREDIT NEWS-July 14, 2011--Russia's c-bank takes licences of Rusich Centre Bank, Bank Ratibor(C)2011 M2 COMMUNICATIONS http://www.m2.com
14 July 2011 - Russia's central bank said on Thursday it had revoked the banking permits of local Rusich Centre Bank and Bank Ratibor.
The c-bank has put the lenders under provisional administration until the appointment of a receiver or a liquidator.
The regulator has concluded that the financial institutions, both based in Moscow, have failed to abide by federal laws regulating banking activities and thus contravened the central bank's by-laws.
The move was also attributed to Rusich Centre Bank's failure to build up sufficient reserves to cover potential losses and its incapability to address creditors' demand.
As to Bank Ratibor, the financial entity suffered a liquidity loss, which affected its ability to settle its obligations to creditors.
As both lenders are part of Russia's deposit insurance system, its depositors will be recouped under the Deposit Insurance Act.
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