Dagestan bank has licence revoked by Central Bank as purge goes on

DyMax

The Dagestan bank Prestizhkreditbanka has had its licence revoked by the Central Bank of Russia as it continues its purge of Russia’s financial sector. “The Bank carried out high-risk lending policy to place funds in low-quality assets, which led to a complete loss of the bank’s equity,” the CBR reported today. “Due to the loss of liquidity the credit institution fails to provide timely fulfilment of obligations to creditors. Managers and owners of the institution failed to take effective measures to normalise its operations and restore the financial situation.” It also claimed that Prestizhkreditbank had been involved in some questionable operations involving large sums of cash.
More than 65 banks have been forced into closure so far this year. Interfax