The Bank of Russia has revoked effective June 8 a banking license held by Bank Financial Standard (Registration No. 1053), the regulator's press service reported.
The Bank of Russia decided to take the last-resort measure because of 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 the bank's state registration, its inability to meet monetary claims of creditors, 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)".
Bank Financial Standard invested funds in weak quality assets and did not compile provisions adequate to the accepted risks. Due to the unsatisfactory quality of assets that generated no sufficient cash flow, the lending institution failed to timely meet its obligations to creditors. Moreover, the proper assessment of the credit risk revealed full loss of equity (capital). Meanwhile, the bank was involved in suspicious transit operations," the Bank of Russia said.
Bank Financial Standard is a member of the national deposit insurance system.
The bank's customers previously wrote in the Banki.ru People's Rating section that they found it difficult to take their deposits back and had problems with corporate payments. The bank did not comment on this information. Later, the Central Bank of Russia banned Bank Financial Standard from opening retail accounts. Since May 10, 2016 the financial institution has operated in a restricted mode.
