- Title: RUSSIA: Russian bank protest
- Date: 20th December 2008
- Summary: MOSCOW, RUSSIA (DECEMBER 19, 2008) (REUTERS) BANK BUILDING LINE OF DEPOSITORS ACROSS THE ROAD FROM BANK WOMAN GETTING OUT OF CAR, ENTERING BANK DEPOSITORS HOLDING SLOGAN: "Capital Credit - return our money!" (SOUNDBITE) (Russian) DENIS DAVYDOV, INVESTOR, SAYING: "You see here people who have been deceived, they have been unable to get their deposits for two, three months and even longer. We were trying to seek information from this bank, Credit Capital, but don't get any straight information - only: Wait a bit, you'll get your money." DEPOSITORS HOLDING SLOGAN: "Revoke license for illegal actions!" (SOUNDBITE) (Russian) ALEXANDER, BANK DEPOSITOR, SAYING: "When depositors ask the bank to return their money, the bank says it has no money in its accounts, sorry." VARIOUS RALLY POLICEMAN CHECKING PROTESTERS' PAPERS
- Embargoed: 4th January 2009 12:00
- Topics: Finance
- Reuters ID: LVA8I67MEPMIU298ND864O2ZWXX0
- Story Text: Investors protest outside a small Moscow bank which they say will not let them take out their money.
Depositors in a small Russian bank took to the streets in central Moscow on Friday (December 19) to demand the return of their funds, the first protest the Russian capital has seen in the credit crisis.
Russia's government has been keen to prevent signs of unrest over the financial turmoil, as Russians still have painful memories of the crisis in 1998. A queue near even a small banks' door could trigger a massive run on banks in the capital.
The current deposit insurance system was established at 2004 and authorities has increased the insurance to cover deposits up to 700,000 (25,000 U.S. dollars) from 400,000 (14,300 U.S. dollars) roubles, trying to reassure the public and stop the outflow of deposits which exceeded 6 per cent in October.
"When depositors ask the bank to return their money, the bank says it has no money on its accounts, sorry," said one protester Alexei.
The bank officials were not available for comment.
A group of 15 depositors picketed the banks' central office after their complaints to financial regulators received no response. They said more than 70 depositors of the bank intended to come out for the rally but the authorities only allowed 15 people to attend. Moscow police kept protesters inside an authorized area.
Protesters were demanding the bank's license be revoked so they would be able to get their money through the insurance.
The Deposit Insurance Agency cannot act until the Central Bank revokes a bank's license or asks the Agency to examine situation due to prevent the bankruptcy and this has not happened yet, the Agency representative told Reuters.
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