DIA to look into local banks’ affairs

4 September 2009 (07:52)

Deposit Insurance Agency State Corporation is going to look into the causes of financial troubles that hit twelve Russian banks that had earlier undergone financial recovery procedures, the Agency’s PR Center informed an UrBC reporter.

‘The inspections of all these twelve insolvency-fighting banks have been planned in advance. In the cases of AKB Electronika, AKB MZB, and KB Moskovskiy Kapital (all of which underwent partial financial recovery, handed their assets and liabilities over to a healthier bank, and then applied for bankruptcy) we are going to investigate why this has happened. In fact, we mean to check whether the bankruptcy was deliberate or not,’ the Agency representatives said.

As for banks like CIT Finance, Tarkhany, and Rossiyskiy Kapital, similar checks are already being carried out. According to the Deposit Insurance Agency, the inspections will have been finished by October 2009.

The checks are aimed at evaluating the banks’ current financial state as well as at identifying the origins of their money problems in the first place. The Agency’s representatives feel it is not improbable that the banks in question found themselves on the brink of bankruptcy due to the actions of their proprietors, who might have had their own investment interests at play.

As a matter of fact, there are some Sverdlovsk Region-based banks among the unfortunate dozen, for instance, Bank Severnaya Kazna (the asset of Alfa-Bank) and Bank24.ru (the asset of Life Financial Group’s Probusinessbank).

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