Bankruptcy of one of Russia's largest banks
The Russian Central Bank has closed the financial institution "Yugra" accused of fraudulent activities and conceal the truth of accounts, becoming one of the biggest victims of the efforts of the authorities to reform the financial sector.
The bank announced in a statement the withdrawal of license "Yogra", which ranks 29th out of 600 Russian banks based on the size of assets. The bank was established in 1990 and has a remarkable presence in the Ural region and Western Siberia.
Yogra joins 300 banks that have been bankrupt since Alvira Nabiulina took over as central bank chief in 2013 and accelerated the process of disposing of hundreds of institutions inherited from a market economy 25 years ago.
The Central Bank, which placed "Ugra" under his supervision since the beginning of July, the rescue of this bank is "inappropriate" in view of the magnitude of its problems, especially as it does not constitute any "structural importance."
The regulator explained that "one of the main problems of the bank is that it provides, thanks to the deposits of citizens, loans to beneficiaries associated with the owners of the bank," adding that it is "suspicious transactions" and manipulates his budget to hide the fragility of financial position resulting from operations.
Russian media reported that the bank was often controlled by businessman Alexei Khutin.