Central Bank has revoked the licenses of two banks

The Central Bank revoked the Moscow joint-stock commercial Bank Terra” and Makhachkala Bank “Credo Finance” license to conduct banking operations. This was reported on the website of the Bank of Russia. In both banks appointed interim administration.

The reason for this was the failure of credit institutions Federal laws regulating banking activities and regulations of the Central Bank. In a statement the Central Bank noted that there was a real threat to the interest of creditors the “Terra”.

“In terms of placement of funds in assets of low quality AKB “Terra”, ZAO inadequately assessed in connection with these risks,” said the regulator, noting that due to the fact that the Bank had to create reserves, there is a risk of bankruptcy of the credit institution.

“In the circumstances, the Bank of Russia took a decision to withdraw from AKB “Terra”, JSC license to conduct banking operations,” concluded the Central Bank.

According to statements by total assets of AKB “Terra” on July 1, 593 took place in the Russian banking system.

“Credo Finance”, in turn, has repeatedly violated within one year of requirements “About counteraction to legalization (laundering) of incomes obtained in a criminal way and financing of terrorism”.

According to statements by total assets of Bank “Credo Finance” on July 1, 624 took place in the Russian banking system.