As of July 24, 2015 the Bank of Russia has revoked a banking license held by Moscow-based Mosstroyeconombank (M Bank, Registration No. 948), the Bank of Russia's press service reported.
M Bank failed to comply with the federal banking laws and the Bank of Russia's statutory acts, and its activities posed a real threat to the interests of creditors and deposit holders, the regulator said in a press release.
M Bank invested funds in poor quality assets. The Bank of Russia submitted to the bank on numerous occasions its demand to pile up additional loan loss provisions and to adequately assess its credit risks. The bank's executives and owners, however, took no measures to bring its activities back to normal, CBR specified. Due to the lending institution's poor asset quality there was no possibility to rehabilitate the lender with the participation of the Deposit Insurance Agency (DIA) on reasonable economic conditions, the Bank of Russia concluded.
M Bank is a member of the national deposit insurance system.
