As of December 24, 2013 the Bank of Russia is to cancel a banking license held by Bank Ascold (Registration No. 2480).
The regulator’s press service noted that Bank Ascold’s license was revoked following the previous decision to cancel the license held by Smolensky Bank, as Bank Ascold is its subsidiary.
The Bank of Russia decided to strip the bank of its license as it violated federal laws regulating banking activities. Also, the bank’s capital adequacy ratio fell below 2%, while its equity dropped below the minimal threshold of the charter capital as specified by the Bank of Russia on the date of the lending institution’s state registration.
The lending institution failed to pile up corresponding provisions against possible losses in proportion to the accepted risks associated with the money deposited at Smolensky Bank. Upon fulfillment of the supervisory body’s demands to form adequate reserves the bank fully lost its capital. Since mid-December 2013 the lending institution has virtually ceased its activities.
Bank Ascold is a member of the national deposit insurance system.
