On July 1, 2016 the Bank of Russia revoked a banking license held by First Czech-Russian Bank (Registration No. 3291, Moscow), the regulator's press service reported.
The Bank of Russia decided to take the last-resort measure as the lending institution failed to comply with federal banking laws, and also the Bank of Russia's statutory acts, capital adequacy ratios dropped below 2%, equity declined fell beneath the minimum 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)".
Holding weak quality assets, FCRB inadequately assessed risks accepted. Proper assessment of the credit risk, in line with the supervisory body's requirements, led to the complete loss of equity. The lending institution's executives and owners took no efficient measures to normalize its operation.
First Czech-Russian Bank is a member of the national deposit insurance system.
The 3-month moratorium imposed on the satisfaction of the bank's creditor claims expired on July 1, 2016.
Since March 24, 2016 temporary administration has worked at the bank and examined the bank's financial position. By July 1, 2016 the DIA was to make proposals related to the bank's further operations. Since April 1, 2016 the bank has become a third 'happy man' in the new history of the deposit insurance system, for which the Bank of Russia imposed a moratorium on the satisfaction of creditor claims. Thus, for three months already the bank has been unable to make settlements with deposit holders or fulfill other claims of creditors, not to mention those concerning the lending institution's day-to-day operation. This means an insured event. Pursuant to the bank's register of obligations, insurance compensation will total roughly Rub 17.4 bln.
