The Bank of Russia has revoked a banking license held by PJSC Smolevich (Registration No. 1121), which is based in the Smolensk region (Roslavl), the regulator's press service reported.
The Bank of Russia's decision was driven by the lending institution's failure to comply with the federal laws regulating banking activities and also CBR's statutory acts, because all its capital adequacy ratios fell below 2% and its equity declined below the minimum threshold set by CBR on the date of the lending institutions' state registration and taking into consideration the application of the measures specified in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
Bank Smolevich pursued a high-risk policy by investing the money in poor quality assets. In the upshot, while fulfilling demands of the supervisory body to compile provisions adequate to the accepted risks the lending institution fully lost its equity," the Bank of Russia emphasized.
As the regulator's data show, the bank's executives and owners took no efficient measures to bring its activities back to normal.
As Banki.ru previously wired, in mid-August the Bank of Russia cut off Commercial Bank Smolevich from the Banking Electronic Speedy Payments (BESP) System. The regulator fully limited the bank's operation with the BESP, thereby depriving it of the opportunity to make payments and money transfers.
