The Bank of Russia has revoked a banking license held by Lada-Credit (Registration No. 2668), the regulator's press service reported.
As the Bank of Russia pointed out, the decision to apply the measure of last resort 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 multiple application of the measures specified in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
Lada-Credit pursued a high-risk lending policy by investing the money in poor quality assets. Upon fulfillment of demands of the supervisory body to form provisions adequate to the accepted risks the lending institution fully lost its equity (capital)," the regulator's press service noted.
The bank's executives and owners took no measures to bring its activities back to normal.
