The Central Bank of Russia has revoked banking licenses held by Sofrino (registration #2972) and Bank BFT (registration #2273), the regulator’s press service reported.
“The decision was taken as the lending institution (Sofrino — editorial note) failed to comply with the federal laws that regulate banking activities and CBR’s statutory acts, as the lender’s capital adequacy ratio dropped below 2% and own funds declined," the regulator pointed out in the press release.
As the regulator emphasized, the bank pursued a high-risk credit policy by investing the money in poor quality assets.
While commenting on its decision with regard to Bank BTF, the Bank of Russia noted that due to the unsatisfactory quality of assets, which generated no sufficient cash flows, the lending institution failed to ensure its obligations to the creditors are timely fulfilled.
“Bank BTF’s management and owners took no efficient actions to normalize its activities or restore its financial standing. Under the circumstances, on the basis of Article 20 of the Federal Law “On Banks and Banking Activity” the Bank of Russia fulfilled the obligation to revoke the lending institution’s banking license," the regulator said.
Both banks are members of the deposit insurance system.
