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Russia's Central Bank revokes licenses from two banks
Russia's Central Bank has revoked license for banking operations from the Moscow-based commercial bank Evromet (the European Bank for Development of Metallurgy Industry), the regulator said in a press release on Thursday.
According to the Central Bank, the bank was conducting a risky credit policy which implied making investments in low-quality assets. The bank's efforts to meet the requirements of the supervisory authority on the formation of reserves adequate to risk-taking resulted in a complete loss of the bank's own funds.
Besides that, in the second half of August 2015, the bank actually stopped providing services to its customers. The management and the owner of the credit institution had failed to take effective measures to normalize its operations.
The regulator appointed an interim administration for the bank until the appointment of a bankruptcy trustee or a liquidator.
The authorities of the executive bodies of the credit institution have been suspended.
The Evromet bank is a member of the deposit insurance system.
According to the Central Bank, as of June 1, in terms of assets the Republican Social Commercial Bank ranked 255th in the Russian banking system.
Another bank that was revoked the license is the Business to Business (B2B) bank based in the republic of Chuvashia, the regulator said in a press release on Thursday.
According to the Central Bank, the B2B Bank was making investments in low-quality assets and did not form sufficient reserves to cover possible losses on loans and other assets.
Besides that the bank did not comply with the law on countering legalization of funds that were obtained illegally or served for criminal purposes.
B2B Bank is a member of the deposit insurance system. The revoke of a license for banking operations is an insurance event.
According to the Central Bank, as of June 1, in terms of assets the B2B Bank ranked 630 in the Russian banking system.
[Source: Itar Tass, Moscow, 27Aug15]
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