The Bank of Russia has revoked effective July 22, 2016 a banking license held by Credit-Moscow (Moscow, Registration No. 5), the regulator's press service reported.
The Central Bank of Russia explained its application of the last-resort measure by the bank's inability to comply with federal banking laws and also its statutory acts, because its capital adequacy ratios fell below 2%, equity (capital) dropped beneath the bank's minimum charter capital as set on the date of the 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)".
"While holding weak quality assets Credit-Moscow (PJSC) inadequately assessed related accepted risks. The proper assessment of the bank's credit risk at the request of the supervisory body showed full loss of the bank's equity (capital). The lending institution's executives or owners took no efficient measures to normalize its activities," the Bank of Russia noted.
Credit-Moscow is a member of the national deposit insurance system.
Previously the Moscow-based financial institution refused to serve customers and recommended deposit holders to contact the Deposit Insurance Agency (DIA) in two weeks. As a Banki.ru correspondent found out, Credit-Moscow was making preparations for the revocation of its license in the near term, and the relevant issue was discussed Thursday at a meeting held by the Bank of Russia's Banking Supervision Committee.
On July 19, 2016 Credit-Moscow cut credit card limits to zero. The bank noted that this was stipulated by the regulator's inspection. News broke on July 20, 2016 that the bank was disconnected from the Banking Electronic Speedy Payment (BESP) system. A Banki.ru source who is familiar with the situation pointed to the possibility of assets withdrawn from the financial institution and, as a consequence, the cooking of financial statements.
The very same day the bank's management board chairwoman Olga Lygina tendered her resignation. Shortly before these developments the lending institution changed hands. This has been the second ownership shakeup over the past six months. The bank saw shareholders changing this March.
