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Russian Commercial Bank's License Withdrawn

Master Bank was recently ranked as Russia's 41st largest bank in terms of accounts and deposits
Russia's central bank has withdrawn the license of Master Bank, a midsized commercial Moscow bank.

The central bank said Master Bank was involved in "large-scale dubious operations," failed to observe money-laundering laws, kept false accounting, and extended loans to connected parties.

Central bank Chairwoman Elvira Nabiullina said Master Bank had a "hole" of at least 2 billion rubles ($61 million) in its capital.

Master Bank was set up in 1992 and most recently was ranked as the 41st largest bank in terms of accounts and deposits.

Deposits of up to 700,000 rubles ($21,500) are guaranteed in Russia, and the state Deposit Insurance Agency will have to pay out an estimated 30 billion rubles ($917 million).

Igor Putin, a cousin of President Vladimir Putin, is still on the bank's board, having previously worked as its vice president.

Based on reporting by Reuters and RIAN