The Bank of Russia has revoked as of April 13, 2015 a banking license held by Yuzhno-Sakhalinsk-based Tikhookeanskiy Vneshtorgbank (Registration No. 1378), the regulator's press service reported.
The lending institution failed to execute federal laws regulating banking activities and CBR's statutory acts, the bank's capital adequacy ratio dropped below 2% and equity (capital) fell below its minimum charter capital as established as of its state registration, the Bank of Russia numbered reasons behind the revoked license.
Moreover, Tikhookeanskiy Vneshtorgbank conducted a high-risk policy, including by lending businesses affiliated with its primary owner. The fulfillment of the supervisory body's demands to create provisions adequate to the accepted risks led to the full loss of the bank's equity (capital), CBR materials show. Throughout 2014 the bank was involved in suspicious operations whereby its corporate clients got funds in cash and wired large amounts abroad, the regulator specified.
The bank's executives and owners took no measures to bring its activities back to normal. "Due to the lending institution's poor asset quality there was no possibility to rehabilitate Tikhookeanskiy Vneshtorgbank with the participation of the Deposit Insurance Agency (DIA) on reasonable economic conditions," the Bank of Russia concluded.
The lending institution is a member of the national deposit insurance system.
