The Central Bank of Russia has revoked as of April 8, 2016 a banking license held by FIA-Bank (Registration No. 2542, based in Togliatti (Samara region)), the regulator's press service reported.
The Bank of Russia explained its license-revoking decision by the lending institution's failure to comply with federal banking laws and also its statutory acts, because capital adequacy ratios fell below 2%, and equity (capital) declined below the minimum amount of the charter capital as established on the date of a lending institution's state registration, and taking into account the multiple application during the year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
"While holding weak quality assets, FIA-Bank assessed related risks inadequately. The proper assessment of the credit risk at the request of a supervisory body showed that the bank's equity (capital) was lost in full," the regulator said in a press release.
The Bank of Russia pointed out that it was not deemed possible to rehabilitate the bank through the participation of the Deposit Insurance Agency (DIA) on reasonable economic terms due to the bank's weak quality assets. Under the circumstances and based on Article 20 of the Federal Law "On Banks and Banking Activities" the Bank of Russia fulfilled the obligation to revoke the lending institution's banking license, the press release says.
Temporary administration was appointed at the bank. The powers and authority of the bank's executive bodies were suspended in accordance with federal laws.
FIA-Bank is a member of the national deposit insurance system.
