MOSCOW Nov 20 Russia's central bank said on
Thursday it was revoking the banking licences of Sochi Bank and
Sibcontact Bank, citing loss of liquidity and inability to meet
That takes the number of Russian banks who have had their
licences revoked since late August to at least nine. One further
bank has had its licence annulled at its own request.
The global credit crunch is taking a toll, leading to
consolidation among Russia's 1,000-plus banks and the failure of
some of the country's smaller financial institutions.
There are also signs that ordinary Russians are starting to
withdraw some money from banks and to increase foreign currency
deposits at the expense of rouble-denominated ones.
Sochi Bank and Sibcontact Bank depositors will be able to
apply to the Deposit Insurance Agency to get their money back.
Authorities have changed the rules in the face of the
crisis, and now the first 700,000 roubles ($25,610) of a deposit
are 100 percent guaranteed -- the equivalent of around 40 times
the average monthly wage.
(Reporting by Toni Vorobyova; Editing by Rupert Winchester)