The Central Bank of Russia has revoked a banking license held by Moscow-based Mostransbank (Registration No. 2258), the regulator's press service reported.
The Bank of Russia decided to take the last-resort measure as the lending institution failed to fulfill federal banking laws and also CBR's statutory acts, and measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" were taken given a real threat to the interests of its creditors and deposit holders.
"Mostransbank invested funds in weak quality assets and compiled no reserves adequate to the accepted risks. Due to the unsatisfactory quality of assets that generated no sufficient cash flow, the lending institution faced reasons to take measures to prevent its insolvency (bankruptcy)," the Bank of Russia pointed out.
The bank's management and owners took no efficient measures to normalize its activities.
Mostransbank is a member of the national deposit insurance system.
