As of March 24, 2015 the Central Bank of Russia has revoked banking licenses held by Congress-Bank (Registration No. 2330, Moscow) and Dagestani Commercial Energy Bank (Registration No. 3286, Makhachkala), the regulator's press service reported.
As the Bank of Russia said, the decision to revoke Congress-Bank's license was made as the lending institution failed to fulfill federal laws regulating banking activities, and also the Bank of Russia's statutory acts and measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", and also taking into account the fact that as of January 1, 2015 the bank's equity (capital) did not reach the minimum set by Part 7 of Article 112 of the Federal Law "On Banks and Banking Activity", and filed no petition to the Bank of Russia seeking to change its corporate status to a non-banking lending institution.
"Congress-Bank violated banking legislation and the Bank of Russia's statutory acts, underestimating its credit risk and piling up loan loss provisions in the amount not corresponding to the accepted risk. The lending institution's executives and owners took no measures to increase its equity to the amount set by law, Rub 300 mln, and no decision was adopted to alter the bank's status to a non-banking lending institution," the regulator's press service pointed out.
Based on CBR's data, Dagenergobank pursued a high-risk lending policy, investing the money in poor quality assets. "The adequate assessment of accepted risks and reliable reflection of the bank's asset value lead to the full loss of its equity. Meanwhile, Dagenergobank failed to fulfill a demand made by the supervisory body as to pile up required loan loss provisions and present financial statements reflecting its real financial standing and grounds for the revocation of a banking license as established in Part 2 of Article 20 of the Federal Law "On Banks and Banking Activity", said the regulator.
The Bank of Russia noted that Dagenergobank's executives and owners took no efficient measures to get the bank's activities back to normal. Under the circumstances the Bank of Russia decided to strip Dagenergobank of its banking license. Dagenergobank is a member of the national deposit insurance system.
