As of March 18, 2014 the Bank of Russia has cancelled a banking license held by Bank of Savings and Credit (S Bank, Registration No. 2581).
The measure of last resort was applied to S Bank as it failed to fulfill federal laws that regulate banking activities and the Bank of Russia’s statutory acts, the regulator’s press service reported. S Bank’s capital adequacy ratio is under 2%, own funds (capital) fell below the minimal amount of the charter capital that the Bank of Russia set as of the date of the lending institution’s state registration, the Bank of Russia said in a press release.
S Bank pursued a high-risk policy of investing drawn funds and formed no relevant provisions against possible losses in proportion to the accepted risks. Upon fulfillment of the supervisory body’s order to pile up adequate reserves against poor quality assets the bank lost its capital in full. The bank’s management and owners took no measures to rehabilitate the bank.
A temporary administration team was appointed to run the bank. S Bank is a member of the national deposit insurance system.
S Bank has suspended operations in Moscow and the Moscow region since March 14.
