15:02 GMT +316 February 2019
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    2 Russian banks stripped of licenses this week

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    MOSCOW, September 21 (RIA Novosti) - Russia's Central Bank said Thursday it had withdrawn licenses from two Moscow-based banks in the last two days over violations of federal laws and banking-sector regulations.

    The decisions came following the killing last week of a senior Central Bank official who led efforts against such violations and ordered the closure of dozens of banks, including for money laundering.

    The commercial Russian Property Trust Bank was stripped of its operating license Thursday because it had failed to create reserves to cover possible losses and meet Central Bank requirements or meet them on time.

    The license of Kumost-Inkass, a non-banking credit organization, was revoked September 20.

    The Bank of Russia said the organization had given a total of $302.2 million (8.1 billion rubles) to clients between 2005 and 2006, whereas its currency reserve did not exceed $13 million (350 million rubles). Its clients also effected payments amounting to a total of 76.6 billion rubles ($2.8 billion) on commodity deals outside Russia's customs zone on behalf of non-residents.

    "Kumost-Inkass' activity posed a real threat to its creditors' interests," the Central Bank said.

    Both lending organizations were placed under provisional administration pending the appointment of external administrators required by Russian bankruptcy law.

    Andrei Kozlov, 41, a Central Bank deputy chairman, was gunned down last Wednesday. He had been at the forefront of efforts to enforce law in the banking sector. Two high-profile cases centered on the revocation of licenses from Moscow-based Sodbiznesbank in 2004 and Neftyanoi Bank this year, but the CBR has been withdrawing licenses almost by the week in 2006.