The Bank of Russia has revoked as of April 2, 2015 a banking license held by Podolsk-based Industrial Savings Bank (Promsberbank, Registration No. 1043), the regulator's press service reported.
Promsberbank conducted a high-risk lending policy by investing the money in poor quality assets. In the upshot, while fulfilling demands of the supervisory body to form provisions adequate to the accepted risks the lending institution fully lost its equity (capital), CBR materials show. The bank's executives and owners took no measures to bring its activities back to normal, the Bank of Russia specified.
Promsberbank is a member of the national deposit insurance system.
News broke this week that Promsberbank stopped serving its customers, representatives of the lending institution's call center told Banki.ru, and visitors of the portal's People's Rating section also wrote. The banking portal's correspondent was told at Promsberbank's Moscow unit, which was also closed, that the unit is preparing to relocate to Podolsk.
For the record, on January 27, 2015 Russian rating agency Expert RA affirmed Promsberbank's creditworthiness rating at B++ (the acceptable creditworthiness rating) and withdrew the rating as it expired and the bank refused to have it updated. The rating outlook was negative, which meant a strong likelihood of the rating downgrade in the mid-term outlook.
