The Bank of Russia has revoked as of February 3, 2016 a banking license held by Bank Zerich (Registration No. 3278), the regulator's press service reported.
The Bank of Russia decided to take the last resort measure as the bank failed to comply with federal banking laws and CBR's statutory acts, numerous violations during the year of requirements provided for in Article 6 and Article 7 (except for Clause 3 of Article 7) of the Federal Law "On Counteracting Legalization (Laundering) of Crime Income and Financing of Terrorist Acts", and also of the Bank of Russia's statutory acts, which were issued in accordance with this law, its capital adequacy ratios fell below 2%, its equity declined beneath the minimum charter capital established on the date of the bank's state registration, taking into account the multiple application of measures stipulated in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia), given a real threat to the interest of creditors and deposit holders.
"With poor quality assets, Bank Zerich inadequately assessed accepted risks. The proper assessment of the credit risk resulted in a full loss of the bank's equity. Since late February the lending institution has actually terminated operations, failing to timely meet its obligations to creditors," the regulator noted.
Moreover, according to the regulator, Bank Zerich failed to observe requirements of laws and of the Bank of Russia's statutory acts as to counteract legalization (laundering) of criminal income and the financing of terrorist acts, including as to timely and provide an authorized body with reliable data on operations that are subject to mandatory supervision. "The lending institution's activity was focused on large-scale suspicious transit operations," the Bank of Russia emphasized.
Bank Zerich is a member of the national deposit insurance system.
As Banki.ru previously reported, Bank Zerich suspended all operations on February 20, 2016. The financial institution posted a message on its website that measures aimed at raising extra funds "in order to strengthen its financial stability" are wrapping up at the moment.
