Russia’s Central Bank has revoked the license of Master Bank (one of the country’s top 100 in terms of assets, and top five in terms of ATMs and cards issued), opening the door for the country’s largest repayment to depositors in history.
“An appropriate risk assessment and a reliable reflection of the assets in the reports of the credit organization led to the loss of equity capital. The low loan quality was most frequently detected in loans granted to bank proprietors’ business partners,” the central bank said, reported the Prime Business News Agency.
The bank held an estimated 47.3 billion rubles ($1.4 billion) in deposits, which will now be paid out by the state-run Deposit Insurance Agency. “The DIA is calling on the bank’s depositors to demonstrate calm and is making assurances that the payments will start on the date that has been mentioned,” the Agency said in a statement.
Under Russian law, depositors are entitled to a full repayment of 700 thousand rubles (over $21 thousand).
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