The Bank of Russia has cancelled the banking licenses held by Mezhprombank Plus and Bank Troika, the PR department of the Central Bank of the Russian Federation reported.
The lending institutions were stripped of their licenses due to the failure to comply with the federal laws regulating banking activities and also CBR’s statutory acts, because of a contraction in their capital adequacy ratios below 2% and a decline in equity capitals below the minimal threshold set by CBR on the date of the lending institutions’ state registration and taking into account the application during the year on many occasions of the measures specified by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”.
For a long time Mezhprombank Plus, as the regulator said in a press release, lent operations conducted by its sole participant and related companies, which to date resulted in the full loss of the bank’s own funds (capital). Neither the management nor parties that control Mezhprombank Plus took efficient actions to restore the bank’s own funds (capital).
Following the formation by Bank Troika, as the Bank of Russia requested, of reserves against loans and other assets in amounts corresponding to CBR’s statutory acts, the lending institution’s own funds (capital) turned negative. The reason for the request seeking additional formation of reserves was the non-repayment for a long time of a large amount of money given to the bank’s director and simultaneously its shareholder.
In line with the Bank of Russia’s Orders (No. OD-512 and No. OD-514 dated October 20, 2010), temporary administration teams were appointed until the appointment of a receiver in accordance with the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions” or a liquidator in line with Article 23.1 of the Federal Law “On Banks and Banking Activity”. In accordance with the federal laws the powers and authority of the lending institutions’ executive bodies were suspended.
Mezhprombank Plus is a member of the national deposit insurance system. The revocation of a banking license is an accident insured as provided for by Federal Law #177-FZ “On Insuring Household Deposits Held with Banks of the Russian Federation”.
