The Bank of Russia has revoked a banking license held by Moscow-based Bank Regnum (Registration No. 3373), the regulator's press service reported.
The decision to take the measure of last resort was adopted due to the non-fulfillment by the lender of federal laws regulating banking activities and CBR statutory acts, identified instances when unreliable reports were submitted, and taking into account the multiple application of measures stipulated in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" within a year.
"The lending institution conducted a high-risk lending policy by investing the money in poor quality assets. The adequate assessment of accepted risks and reliable reflection of the bank's asset value lead to the full loss of its equity (capital). Meanwhile, Bank Regnum failed to fulfill demands made by the supervisory body as to make up required loan loss provisions and present financial statements reflecting its real financial standing and grounds for the revocation of a banking license," the regulator said in a press release.
Furthermore, based on CBR data, the bank was involved in suspicious transit operations, while its executives and owners failed to act efficiently to normalize the bank's operations.
Bank Regnum is a member of the national deposit insurance system.
