First Republican Bank license revoked
MOSCOW, MAY 5 (RAPSI) - Russia’s Central Bank has revoked the license of Moscow based First Republican Bank (FRB) on Monday, according to the watchdog’s statement.
FRB was one of the top-200 largest Russian banks and held 24.61 billion rubles ($689.355 million) of private individuals’ funds.
“First Republican Bank’s high-risk credit policy included investing in low-quality assets that do not generate money flow. Due to the loss of liquidity, the bank could not honor its obligations to creditors and depositors,” reads the Central Bank’s statement. Moreover, the bank’s management and owners did nothing to ensure its operation. Bank was a member of Russia’s deposit insurance system.
In late April, 2014 FBR told it’s customers that bank’s offices would be closed for technical reasons. On April 29 FBR credit cards stopped functioning as well.
First Republican Bank has been operational since 1992. Bank held offices in Moscow, St. Petersburg and other Russian cities.