The Bank of Russia has revoked a license held by Moscow-based Gazstroybank (Registration No. 2919), the regulator's press service reported.
The Bank of Russia decided to apply the last-resort measure as the lending institution failed to fulfill federal banking laws, and also its statutory acts, and given the application of measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" taking into account a real threat to the interests of the bank's creditors and deposit holders.
"Gazstroybank pursued a high-risk lending policy by investing funds in low-quality assets. The adequate assessment of the accepted risks, at the request of the supervisory body, and reliable reflection of the bank's asset value led to the situation when the bank saw reasons to take measures to prevent its insolvency," the regulator noted in the press release.
Moreover, the lending institution was involved in suspicious transit operations. The bank's management and owners took no efficient measures to normalize its activities.
Gazstroybank is a member of the national deposit insurance system.
