mo4ch:>Major Russian bank ready to shut off Visa & Mastercard, halves dollar holdings | Mo4ch News
One of Russia’s state-run banking giants sanctioned by the US, Promsvyazbank, has brought its security deposits payable to international payment systems – Visa and Mastercard – down to a minimum.The measure is set to be implemented by converting domestic banking transactions to Russia’s Mir payment system, launched by the Central Bank of Russia in 2015, a year after Western sanctions against the country were introduced.Russia’s ninth biggest financial institution has also reduced its foreign-exchange holdings, according to Promsvyazbank president Pyotr Fradkov, as quoted by Russian business daily Vedomosti.Read more Security deposits are commonly used as proof of intent for lenders to guarantee fulfilment of their settlement obligations. The amount of such a deposit depends on the bank’s daily turnaround.“We have carried out the necessary work with Visa and Mastercard. Our partners agreed with the measure and are ready to work with us in the same mode,” Fradkov told the media. “We are …