The Bank of Russia has revoked as of October 23 a banking license held by Moscow-based Greenfieldbank (Registration No. 2711), 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)".
"Greenfieldbank pursued a high-risk lending policy by investing the money in poor quality assets. After having fulfilled demands of the supervisory body to form provisions adequate to the accepted risks the lending institution fully lost its equity (capital)," the regulator noted.
Meanwhile, the financial institution failed to observe restrictions and bans imposed by the Bank of Russia on its separate activities, and the bank was also involved in 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.
Greenfieldbank is a member of the national deposit insurance system.
Earlier Greenfieldbank stopped accepting deposits and issuing retail loans, and was also cut off from BESP.
