The Central Bank of Russia has revoked as of February 26, 2016 a banking license held by Milbank (Registration No. 3256), the Bank of Russia's press service reported on Friday.
The Bank of Russia decided to act so as the lending institution failed to fulfill federal laws regulating banking activities and the Bank of Russia's statutory acts, and measures provided for in the Federal Law "On the Central Bank of Russia (Bank of Russia)" were taken, and also taking into account a real threat to the interests of the bank's creditors and deposit holders.
"Milbank conducted a high-risk credit policy and formed no loan loss provisions adequate to the accepted risks. Meanwhile, the lending institution failed to fulfill demands specified in orders issued by a supervisory body as to ban separate operations in order to protect the interests of the bank's deposit holders. The bank's executives and owners took no efficient measures to bring its operation to normal," CBR pointed out.
Milbank is a member of the national deposit insurance system.
