As of August 27, 2015 the Bank of Russia has revoked a banking license held by Chuvashi-based Bank B2B (Registration No. 1060), the Bank of Russia's press service reported.
The lending institution invested funds in poor quality assets and failed to form loan loss provisions that are adequate to the accepted risks and other assets, the regulator noted. The formation of required provisions led to the loss of a consideration portion of the bank's capital. Furthermore, the bank failed to observe statutory requirements regarding counteraction of legalization (laundering) of criminal income and the financing of terrorist acts as to provide an authorized body with reliable data on operations that are subject to mandatory supervision, and also the manner in which customers are identified. Moreover, the bank's executives and owners took no efficient measures to bring its operation to normal, CBR materials show.
The bank is a member of the national deposit insurance system.
Recently the National Rating Agency (NRA) cut its national scale credit rating of BB- on B2B Bank, assigning a negative outlook, pointing to the deterioration of the bank's credit portfolio quality, which made it to compile extra provisions. Meanwhile, the lending institution's equity fell beneath the Rub 300 mln statutory threshold, equaling Rub 248.1 mln as of August 1, NRA said in a press release.
