The Bank of Russia has cancelled banking licenses from Medprominvestbank and Republican Reserve Bank, the PR department of the Central Bank of Russia reported.
Medprominvestbank’s license was revoked due to the lending institution’s failure to fulfill the federal laws that regulate banking activities and also CBR statutory acts, facts of material unreliability of data provided and also taking into account the numerous application of the measures, during a year, which are provided for by the Federal Law «On the Central Bank of the Russian Federation (Bank of Russia)».
Medprominvestbank pursued a high-risk lending policy and allowed inadequate formation of reserves for possible losses under loans which resulted in unreliable reports provided to the Bank of Russia, a press release said.
During one year Republican Reserve Bank failed to meet the requirements of the Federal Law «On Counteracting the Legalization (Laundering) of Income Derived Using Criminal Means and the Financing of Terrorism». The lending institution broke the deadlines for submitting data about operations that are subject to mandatory control to Rosfinmonitoring.
In accordance with the CBR order, provisional administrations were appointed at the banks until a receiver or a liquidator is appointed in accordance with the Federal Law «On Insolvency (Bankruptcy) of Lending Institutions». Pursuant to the federal laws, the power and authority of the bank’s governing bodies have been suspended.
