The first rule dealing with banks

Today I woke up a little earlier than I would normally do, so I have some time to comment on recent news I’ve just read.

Russian Central Bank has revoked a banking license from “Novokuznetskiy Municipal Bank” (RUS). I don’t care, there is a Deposit Insurance Agency covering this and I’m not a client of this bank anyway, but there is some interesting aspect of the story.

Today is a first business day in Russia. And Central Bank is issuing this statement right at the very dawn. There is no way they didn’t know about serious problems with the bank before New Year holidays. At the very end of December they issued a statement saying “we’re not considering revoking banking license of this bank” (RUS).

So the thing is: you can not trust central bank’s statements confirming health of any bank. They are tend to lie about it so you don’t panic and rush to a cash register until it is too late.

The bottom line would be as always in Russia. At the first sign of trouble, if you have anything with this bank — run fast. Right now you can sleep well if you have less than the deposit insurance covers. Some time in the future you would probably be better off withdrawing any money from the troublesome bank.

People of Cyprus approve this message as well 🙂

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