Starting June 1, 2015 the Central Bank of Russia has cancelled a banking license held by Tyumen-based Sibneftebank (Registration No. 385), the regulator's press service reported.
The Bank of Russia decided to apply the measure of last resort "as the lending institution failed to execute federal laws regulating banking activities and CBR's statutory acts, the bank's capital adequacy ratios dropped below 2%% and equity (capital) fell below its minimum charter capital as established as of its state registration, and taking into account the application of the measures provided for in the federal law".
Furthermore, the regulator specified in its press release that Sibneftebank conduted a high-risk policy by investing funds in poor quality assets. Upon formation of provisions adequate to the accepted risks the lending institution fully lost its equity. "The bank's executives and owners took no efficient measures to bring its activities back to normal," the Bank of Russia noted.
Sibneftebank is a member of the national deposit insurance system.
