The Bank of Russia has revoked effective March 18, 2016 a banking license held by StarBank (Registration No. 548), the regulator's press service reported.
The Bank of Russia explained its decision to apply the last-resort measure as the lending institution failed to fulfill federal laws regulating banking activities and CBR's statutory acts, given the multiple application during a year of the 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 creditors and deposit holders.
StarBank conducted a high-risk credit policy and piled up no loan loss provisions adequate to the accepted risks. Meanwhile, the lending institution did not execute demands given in orders of a supervisory body to ban separate operations aimed at protecting the interests of the bank's deposit holders. Moreover, the bank was involved in suspicious operations to transfer funds abroad, and also in suspicious transit operations. StarBank executives and owners took no efficient measures to bring its activities back to normal, the regulator noted.
StarBank is a member of the deposit insurance system.
To remind, since March 16, 2016 the Bank of Russia disconnected StarBank from Banking Electronic Speedy Payments (BESP) system. In early March StarBank suspended the opening of deposit accounts at its Moscow head office, citing technical reasons. At that time, the bank was unable to specify how fast a glitch would be eliminated. There was no information on deposit accounts (in the section for retail clients) on the bank's website.
In February, Russian rating agency RIA Rating downgraded StarBank's national scale credit rating from BBB to BB-. The rating carries a negative outlook.
