The Bank of Russia has revoked effective March 24, 2016 a banking license held by Bank Bogorodsky (Registration No. 1277), the regulator's press service reported.
The last-resort decision was adopted as the bank failed to fulfill federal laws regulating banking activities and also the Bank of Russia's statutory acts, as capital adequacy ratios dropped below 2%, equity capital fell beneath the minimum charter capital amount as set on the lending institution's state registration, taking into account the multiple application during a year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia).
"Bank Bogorodsky pursued a high-risk credit policy, investing funds in weak quality assets. Upon fulfillment of the demands made by a supervisory body to compile provisions adequate to the accepted risks, the lending institution fully lost its equity capital. The lending institution's management and owners took no efficient measures to normalize its activity," the Bank of Russia emphasized.
As the media previously reported, since March 21, 2016 Bank Bogorodsky has encountered partial limitation of settlements through the Banking Electronic Speedy Payment (BESP) system. "Our Bank-Client system is now inoperative, payments will be made through hard copies once they come in," the bank's employee in Moscow said.
Bank Bogorodsky is a member of the deposit insurance system.
