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. Last Updated: 07/27/2016

St. Petersburg Bank Will Lose Its License

ST. PETERSBURG -- The Central Bank has abandoned a six-month attempt to save the faltering Severny Torgovy Bank, announcing it would revoke the bank's license next week.

"The gross errors of the bank's past leadership have made it impossible to expect to revive the bank," the St. Petersburg directorate of the Central Bank said in a statement Thursday. "The future fate of the bank will have to be decided by its shareholders."

The bank formally will lose its license Feb. 2, leaving a liquidation commission to deal with creditors and nearly 80,000 depositors who have waited since August for their money. Former bank director Andrei Yunev and the rest of the former management are being investigated.

It will be the third local bank to have its license revoked in recent months. Rozhdestvenny Bank and Bank Soyuz lost their licenses in November. In addition, the Central Bank has prohibited Astrobank from further activity pending reorganization.

Severny Torgovy Bank, St. Petersburg's third largest in terms of individual accounts, has been run by a temporary administration installed Aug. 2 by Central Bank officials in an effort to prevent a complete collapse.

Nearly 115,000 individuals have accounts at the bank, 40,000 of whom have received up to 400,000 ($85) rubles each of their deposits. On Tuesday, the bank began repaying some of 1,000 depositors who are veterans of World War II. Many put their savings in the bank during a Victory Day advertising campaign.

Central Bank spokesman Yevgeny Solomenko said funds to pay depositors came from the sale of branches and stocks held by the bank, as well as profits from commercial operations during the past six months.