The Bank of Russia has revoked as of October 16 a banking license held by Lenoblbank (Registration No. 1003), 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)".
As the regulator noted, Lenoblbank conducted a high-risk lending policy, investing funds 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).
Furthermore, Lenoblbank failed to comply with the requirements of laws and the Bank of Russia's statutory acts regarding counteraction of legalization (laundering) of criminal income and the financing of terrorist acts as to timely and fully provide information to an authorized body. Meanwhile, the lending institution's activity was focused on large-scale suspicious transit operations.
"The bank's executives and owners took no efficient measures to normalize its activities. Under the circumstances, on the basis of Article 20 of the Federal Law "On Banks and Banking Activity" the Bank of Russia fulfilled its obligation to revoke the lending institution's banking license," the Bank of Russia pointed out.
