As of May 26, 2014 the Bank of Russia has revoked licenses from two Moscow-based banks, Creditimpex Bank and Bank Kutuzovsky, the regulator’s press service reported.
Based on the CBR’s data, both lending institutions failed to fulfill federal laws which regulate banking activities and the Bank of Russia’s statutory acts.
Meanwhile, Bank Kutuzovsky pursued a risky lending policy and failed to compile loss provisions comparable with the accepted risks. Due to the loss of creditworthiness the bank was unable to fulfill its obligations to creditors on time. As Ramil Sharapov, analyst at the news & analytical service at Banki.ru, noted, Bank Kutuzovsky did not serve households and specialized in corporate lending and services. “Critical liquidity ratios, modest ROA and also the lack of the owners’ real interest to support the bank eventually led to the loss of the bank’s creditworthiness and the revocation of the license," he emphasized.
CBR’s data show that Creditimpex Bank held no loss provisions adequate to the accepted risks, violated the manner and the timeframe of submitting financial statements. In addition, suspicious operations, in which the lending institution was involved, exceeded Rub 13.5 bln in 2013. The bank also focused on corporate clients and also had a retail credit portfolio (over Rub 100 mln or 17% of the assets), Ramil Sharapov added.
Based on Banki.ru data, as of May 1, 2014 Creditimpext Bank’s net assets stood at Rub 620 mln (No. 769 in Russia), while those of Bank Kutuzovsky equaled Rub 490 mln (No. 795 in Russia).
