The Bank of Russia has revoked effective May 27 a banking license held by Technology Development Bank (Registration No. 3441), the regulator's press service reported.
The Bank of Russia explained its decision to take the last-resort measure by the lending institution's failure to comply with federal banking laws, and also with the Bank of Russia's statutory acts, because capital adequacy ratios fell below 2%, capital dropped below the minimum charter capital as established as of the date of a bank's state registration and 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)".
Technology Development Bank invested funds in poor quality assets and did not compile adequate reserves. Moreover, the lending institution fully lost its equity (capital)," the regulator noted.
Technology Development Bank is a member of the deposit insurance system.
In late January the Bank of Russia ordered Technology Development Bank to limit the opening of new deposit accounts for six months. A Banki.ru source said that on March 2, 2016 the bank's executives met with CBR officials to find out reasons behind the regulator's decision to limit operations with deposit accounts. According to a Technology Development Bank source, the regulator's actions are inadequate to the violations of the law on measures counteracting legalization (laundering) of criminal income and the financing of terrorist acts, in the breach of which the bank was accused of.
In March, Russian rating agency AK&M cut its national scale credit rating on Technology Development Bank from B++ to B+.
