The Bank of Russia has revoked effective March 17, 2016 a banking license held by 1Bank (Registration No. 2896), the regulator's press service reported.
The Bank of Russia decided to apply the last-resort measure as the lending institution failed to fulfill federal laws regulating banking activities and CBR's statutory acts, violated many times during a year measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Russia)", and also taking into consideration a real threat to the interests of its creditors and deposit holders.
"With weak asset quality, 1Bank inadequately assessed accepted risks. The proper assessment of the credit risk and reliable reflection of its asset value lead to reasons for the lending institution to take measures to prevent insolvency (bankruptcy). Furthermore, the lending institution did not observe restrictions imposed by the Bank of Russia on separate operations," the press release pointed out.
1Bank is a member of the deposit insurance system.
In March 1Bank temporarily stopped closing or replenishing current retail deposits. However, according to Banki.ru readers, 1Bank encountered first problems to close deposit accounts back in late December 2015. A banking market source of Banki.ru said that 1Bank was cut off Banking Electronic Speedy Payment (BESP) system.
