As of March 18, 2014 the Bank of Russia has revoked a banking license held by Moscow-based Bank Stroycredit (Registration No. 18).
Bank Stroycredit failed to fulfill federal laws regulating banking activities and the Bank of Russia’s statutory acts, and also provided the regulator with substantially misstated financial statements, the regulator said in a press release posted on its website. At the same time, the bank pursued a high-risk lending policy, formed no adequate risk-weighted reserves against loan losses and other assets. Bank Stroycredit heavily invested in a mutual fund, with records of units kept at substantially inflated prices. At the same time, the bank failed to execute orders given by a supervisory body to give real view of its financial standing in records and financial statements. The lending institution’s executives and owners took no required measures to normalize its activities, the Bank of Russia specified. The lending institution is a member of the national deposit insurance system.
In early March the bank imposed limits on the withdrawal of deposit accounts and ATM cash withdrawals, setting the daily limit at Rub 100,000. Bank Stroycredit explained this decision by heavy demand of deposit holders. Furthermore, the bank ceased to make non-cash payments.
