The Bank of Russia has revoked as of June 24, 2015 a banking license held by Moscow-based MAST-Bank (Registration No. 3267), the regulator's press service reported.
Due to the high-risk lending policy and the unsatisfactory quality of the assets which generated no sufficient cash flow, MAST-Bank failed to meet its obligations to deposit holders. At the same time, the lending institution provided the Bank of Russia with materially misstated financial statements that concealed reasons for measures required to prevent insolvency (bankruptcy) and to revoke the banking license, the regulator reported.
Furthermore, the fulfillment by the bank of the supervisory body's order to compile loan loss provisions adequate to the accepted risks resulted in a critical decline in the bank's equity (capital), the Bank of Russia noted.
It was also found out that the lending institution violated many times laws counteracting legalization (laundering) of criminal income, and the financing of terrorist acts, specifically, with regard to the identification of customers in the course of non-cash settlements based on their instructions. Meanwhile, the lending institution participated in large-scale suspicious transactions to transfer funds abroad, and also in suspicious transit operations, the Bank of Russia said in a press release.
MAST-Bank is a member of the deposit insurance system.
This spring Banki.ru wrote that the lending institution made payments with some delays. This April MAST-Bank set the cash withdrawal limit for retail deposits. In early May the bank said it found an investor to restore its financial standing, and in early June the lending institution experienced a complete shakeup of the board of directors and executives. In early May Russian rating agency RAEX downgraded MAST-Bank to pre-default.
As Banki.ru learned, on June 8, 2015 MAST-Bank was cut off the Banking Electronic Speedy Payment (BESP) System. This could have been a sign that the lending institution lacks liquidity, market participants told the portal.
