Russia’s Central Bank revoked another banking license late on Wednesday. This one had allegedly been in the works for awhile, but had been put on hold over the holidays. Vneshprombank was ranked 40th in the Russian banking system.
The Central Bank has been revoking licenses regularly for over 4 years now. But it has become particularly obvious in the last year. In 2015 alone, over 150 banks were shut down. This is approximately 1 every other business day. The goal, according to VTB chief Kostin, is to get the number of banks in Russia to below 300.
Last month, Sberbank’s Gref “predicted” that every 10th bank will be shut down this next year.
I’ve already noted that Russia’s reserves are running low. This is nothing more than asset stripping at its most brutal and obvious. Times are truly getting desperate for Russia’s Central Bank.