MOSCOW — Russian regulators have cancelled the licence of AKB Novokuznetsk Municipal Bank (NMB), saying that the Siberian lender made high-risk loans and allowed its owners to borrow from the company.

The Russian central bank said in a statement on its website on Thursday that NMB was running "a high-risk credit policy" and not adequately creating reserves for possible loan losses. The bank, which was among Russia’s top 300 lenders by assets as of last month, did not fulfil its obligations to creditors and depositors because of insufficient cash flow, the regulator said.

NMB said depositors with as much as 700,000 rubles ($21,000) are entitled to a full reimbursement from the Deposit Insurance Agency.

Payments would begin by January 23, the agency said on its website. NMB’s press office did not respond to calls seeking further comment.

The regulator has accelerated its crackdown since November 29 when it revoked the licence of Master Bank, Russia’s 41st largest lender by assets, for money-laundering violations. Midsize lenders Project Financing Bank and Smolensky Bank were also shuttered on December 13, and Investbank was closed after failing capital adequacy reviews.

The central bank has revoked about 30 banking licences since July 1 when Elvira Nabiullina succeeded Sergey Ignatiev as governor, compared with three in the first half of the year. She is striving to tighten regulation of banks and curtail net capital outflow, forecast at about $55bn last year.

NMB, which focused on the Kemerovo region of Siberia, was set up in 1994 and provides services to firms and individuals, according to its website.

An unidentified NMB director is being probed for allegedly transferring cash from the bank to other lenders in Russia to repay debts, according to a statement on Thursday by the Russian Investigative Committee. This had resulted in depriving the bank of sufficient reserves to cover its clients’ loans, according to the statement.

Got this news from one of my contractors who lives in russia. I asked him to send me the complete list of sources and will post it soon.

It's 3 medium banks and 12 small banks that were crashed. More banks collapses are coming soon as insurance fund was depleted to partially cover deposits from the first 3 banks.

That was published in their regional press in multiple small articles. For obvious reasons they don't publish it at once at prime time. I wonder why western media still is not aware of this issue.

I'm surprised that Russians are still keeping their money in banks. Don't they remember how it was in 1998 when almost all the russian banks crashed with complete loss of deposits?

MOSCOW — Russian regulators have cancelled the licence of AKB Novokuznetsk Municipal Bank (NMB), saying that the Siberian lender made high-risk loans and allowed its owners to borrow from the company.

The Russian central bank said in a statement on its website on Thursday that NMB was running "a high-risk credit policy" and not adequately creating reserves for possible loan losses. The bank, which was among Russia’s top 300 lenders by assets as of last month, did not fulfil its obligations to creditors and depositors because of insufficient cash flow, the regulator said.

NMB said depositors with as much as 700,000 rubles ($21,000) are entitled to a full reimbursement from the Deposit Insurance Agency.

Payments would begin by January 23, the agency said on its website. NMB’s press office did not respond to calls seeking further comment.

The regulator has accelerated its crackdown since November 29 when it revoked the licence of Master Bank, Russia’s 41st largest lender by assets, for money-laundering violations. Midsize lenders Project Financing Bank and Smolensky Bank were also shuttered on December 13, and Investbank was closed after failing capital adequacy reviews.

The central bank has revoked about 30 banking licences since July 1 when Elvira Nabiullina succeeded Sergey Ignatiev as governor, compared with three in the first half of the year. She is striving to tighten regulation of banks and curtail net capital outflow, forecast at about $55bn last year.

NMB, which focused on the Kemerovo region of Siberia, was set up in 1994 and provides services to firms and individuals, according to its website.

An unidentified NMB director is being probed for allegedly transferring cash from the bank to other lenders in Russia to repay debts, according to a statement on Thursday by the Russian Investigative Committee. This had resulted in depriving the bank of sufficient reserves to cover its clients’ loans, according to the statement.

LOL. 15 Russian banks have just collapsed with almost-complete deposit losses, their deposit insurance fund is empty, but they are warning people against the use of bitcoin.

The second most ridiculous statement about bitcoin after Cyprus central bank

Where did you get the figure 6000?
Please post a screenshot with it

A flash crash is always fun to watch.


Also, why is china barely gives a fuck?

Um, he is not just owner of an exchange, but a founding member of the Bitcoin Foundation? and Marc Karpeles is another? 

Whatever one thinks about the morality or legality of the arrest, I expect it will be very bad for Bitcoin's image.  Many common people will probably stay away from any X when they learn that a top honcho of the  "X Foundation" was charged with criminal use of X.

Private bitcoiners ignore them, but institutional investors listen and follow.. especially when it is from their local jurisdiction.

There goes all the rusky oligarch money.

i'm a chinese. although the goverment in here is lying every second, but this time, i think it is just a system maintenance.

China Halts Bank Cash Transfers

The People’s Bank of China , the central bank, has just ordered commercial banks to halt cash transfers.

This notice, for instance, appears on the online portal for Citigroup's C -2.74% Citibank unit for its China customers:

Important Notice:

1. Due to the system maintenance of People’s Bank of China, Domestic RMB Fund Transfer through Citibank (China) Online and Citi Mobile will be delayed during January 30th 2014, 16:00pm to February 2nd 2014, 18:30pm. As to the fund availability at the receiving bank, it depends on the processing requirements and turnaround time of the receiving bank. We apologize for any inconvenience caused.

2. During Spring Festival, Foreign Currency Transfer Transaction through Citibank (China) Online and Citi Mobile will be temporally not available from January 30, 2014 18:00pm to February 7, 2014 09:00am. We apologize for any inconvenience caused.

If you have any enquiries, please reach us via our 24-hour banking hotline at 800-830-1880 or credit card hotline at 400-821-1880. If you are calling from other parts of the world, please reach us at 86-20-38801267 for banking services or 86-21-38969500 for credit card services.

In short, there will be a three-day suspension of domestic renminbi transfers.  There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.

The specific reason given—“system maintenance” at the central bank—is preposterous.  It is not credible that during the highest usage period in the year—the weeklong Lunar New Year holiday beginning January 31—the central bank would schedule an upgrade and shut down cash transfers.

A better explanation is that the country’s banking system is running dry.  Yes, there is an increased need for money in the run-up to and during the Lunar New Year holiday, but that is only a small factor.  After all, central bank officials knew this spike in demand was coming—it occurs every year at this time—and a core function of central banks is to manage seasonal liquidity fluctuations.  Moreover, the holiday has not started yet, and the PBOC, as that institution is known, could have added more liquidity to meet cash needs.

So what’s really going on?  This crunch follows similar incidents in June and December of last year.  In June, for instance, the central bank used the excuse of a “system upgrade” to allow banks to shut down their ATMs and online banking platforms.  As a result, they conserved cash and thereby avoided a nationwide meltdown.

http://www.forbes.com/sites/gordonchang/2014/01/26/china-halts-bank-cash-transfers-2/

China Halts Bank Cash Transfers



The People’s Bank of China , the central bank, has just ordered commercial banks to halt cash transfers.

This notice, for instance, appears on the online portal for Citigroup's Citibank unit for its China customers:


In short, there will be a three-day suspension of domestic renminbi transfers.  There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.

The specific reason given—“system maintenance” at the central bank—is preposterous.  It is not credible that during the highest usage period in the year—the weeklong Lunar New Year holiday beginning January 31—the central bank would schedule an upgrade and shut down cash transfers.

A better explanation is that the country’s banking system is running dry.  Yes, there is an increased need for money in the run-up to and during the Lunar New Year holiday, but that is only a small factor.  After all, central bank officials knew this spike in demand was coming—it occurs every year at this time—and a core function of central banks is to manage seasonal liquidity fluctuations.  Moreover, the holiday has not started yet, and the PBOC, as that institution is known, could have added more liquidity to meet cash needs.

So what’s really going on?  This crunch follows similar incidents in June and December of last year.  In June, for instance, the central bank used the excuse of a “system upgrade” to allow banks to shut down their ATMs and online banking platforms.  As a result, they conserved cash and thereby avoided a nationwide meltdown.

So today’s “system maintenance” notice is a sign of a fundamental problem.  Banks, in short, need cash to rollover ever-increasing amounts of nonperforming loans and wealth management products.  This month, cash needs are even higher than normal because of the impending default of the Credit Equals Gold wealth product scheduled for January 31.  Analysts are worried that the failure, if it occurs, will cause a China-wide panic.

Perhaps more important, the Federal Open Market Committee is holding its next meeting on January 28-29 so there could be an announcement on the 29th on the trimming of bond purchases.  The suspension of FX transactions means that speculators will not be able to dump renminbi and buy dollars.  Fed Chair Bernanke’s words on tapering, beginning in May of last year, shook emerging markets.  A FOMC announcement this time could undermine China, especially because of the darkening perceptions about that country.

Pundits, pointing to the nation’s $3.82 trillion in foreign exchange reserves, are fond of saying that Beijing has enough money to weather any situation.  Yet China does not have a foreign currency crisis.  It has a domestic currency one where dollars, euros, pounds, and yen are not much use.

Banks are evidently scrambling for cash.  They have, in the past, resorted to desperate maneuvers at the ends of calendar quarters to meet regulatory requirements.  The current crunch is even more alarming because it cannot be occurring for quarter-end reasons.

Something is very wrong in China at the moment.  Banks’ apparent need to conserve cash, coming just weeks after the last incident, looks ominous.

Follow me on Twitter @GordonGChang

http://www.forbes.com/sites/gordonchang/2014/01/26/china-halts-bank-cash-transfers-2/

Problem with "free" income is that you are going to spend your coins to get stuff for "Free".  However, that stuff wasn't free for the person who grew it, created it, or what have you - they had to work for it.

So what you've done, essentially, is enslaved the producers for that period of time they made that item or service.

What your saying is along the lines of: lets end poverty by simply giving everyone on earth who is poor One Million Dollars!  Then the producers can work their butts off for that money that was given to the poor people.  Couldn't be simpler, why hasn't anyone thought of that before?!!!!

The real way to get un-poor is to increase your value to the world - skill sets, working harder, etc.  The only way known to man that works.  NOT hoping someone gives you money for nothing.

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r/Bitcoin = 1,051 online now   ->   r/Litecoin = 149 online now   ->   r/Dogecoin = 1,988 online now

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