The Bank of Russia has revoked as of June 29, 2016 a banking license held by Moscow-based Prisco Capital Bank (Registration No. 2537), the regulator's press service reported.
The decision to take the last-resort measure was taken because the lending institution failed to comply with federal banking laws and also CBR's statutory acts, capital adequacy ratios dropped below 2%, equity (capital) fell below the minimum threshold for the charter capital as set 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)".
"Prisco Capital Bank pursued a high-risk credit policy, investing funds in weak quality assets. Upon formation of provisions adequate to the accepted risks, the bank lost its equity (capital) in full. Meanwhile, the lending institution did not fulfill demands of a supervisory body, namely bans imposed on separate operations that aimed to protect interests of the bank's deposit holders," the Bank of Russia noted in a press release.
As the regulator states, the lending institution's executives and owners failed to take efficient measures to normalize its activities.
Prisco Capital Bank is a member of the deposit insurance system.
