The Bank of Russia has revoked as of October 23 a banking license held by Eurokommerz (Registration No. 1777), the regulator's press service reported.
The Bank of Russia pointed out that the decision to apply the measure of last resort was taken due to 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)".
"While supervising the activity of Eurokommerz the Bank of Russia revealed material undervaluation of credit risks and the submission of unreliable financial statements. The proper assessment of the credit risk at the request of the supervisory body showed full loss of the bank's equity," the Bank of Russia noted in a press release.
Moreover, Eurokommerz failed to observe the requirements of legislation and the Bank of Russia's statutory acts in the field of measures to prevent legalization (laundering) of criminal income and the financing of terrorist acts, failing to timely and fully provide authorities with information. Meanwhile, the lending institution's activity was focused on large-scale suspicious transit operations.
"The bank's executives and owners took no measures to bring its activities back to normal. Under the circumstances, based on 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.
Eurokommerz is a member of the national deposit insurance system.
