By its order issued on June 1, 2015 the Bank of Russia revoked a banking license held by Metrobank (Registration No. 2548), the regulator's press service reported.
The Bank of Russia decided to act so as the lending institution failed to fulfill federal laws regulating banking activities and the Bank of Russia's statutory acts, and measures provided for in the Federal Law "On the Central Bank of Russia (Bank of Russia)" were applied during the year, and also taking into account a real threat to the interests of the bank's creditors and deposit holders.
"Metrobank conducted a high-risk lending policy and piled up no loan loss provisions adequate to the accepted risks. Due to the unsatisfactory quality of the assets which generated no sufficient cash flow the lending institution regularly failed to timely meet its obligations to creditors and deposit holders. The bank's executives and owners took no measures to bring its activities back to normal," the Bank of Russia noted.
Meanwhile, as previously wired, in mid-May Moscow-based Metrobank failed to fulfill the second part of a repurchase transaction with the Bank of Russia for around Rub 1.1 bln, and was warned by the regulator accordingly.
Since May 21, 2015 Metrobank has suspended support of debit and credit cards, so its clients are unable to use their credit card limits. As Banki.ru found out, the financial institution's management decided to temporarily terminate the support of bank cards at the beginning of this week. "It is unknown how long it will take," representatives of Metrobank's call center told Banki.ru.
The lending institution previously suspended the acceptance of deposit accounts.
