The Bank of Russia has revoked effective August 16, 2016 a banking license held by Russian Trust Bank (Registration No. 1139). The relevant press release was posted on the regulator's website.
The decision to apply the last-resort measure was taken as the lending institution failed to fulfill federal banking laws, and also the Bank of Russia's statutory acts, capital adequacy ratios fell below 2%, equity (capital) dropped beneath the minimum charter capital as set on the date of the lending institution's state registration 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 poor quality assets, Russian Trust Bank (JSC) inadequately assessed related risks. The proper assessment of the credit risk, at the request of the supervisory body, revealed full loss of the bank's equity (capital). The lending institution's executives and owners took no efficient measures to normalize its activities," the Bank of Russia pointed out.
Russian Trust Bank is a member of the national deposit insurance system.
Last Friday, August 12, the Bank of Russia cut Russian Trust Bank off the Banking Electronic Speedy Payment (BESP) system. As a result, the service of the bank's cards was suspended.
The lending institution said that it has sufficient funds to get out of the crisis. "Russian Trust Bank's shareholders and top managers spare no efforts to resolve the current problem. They are looking for the possibilities to meet all their obligations to the bank's clients and partners. The bank holds sufficient resources to do this and is now using best efforts to get out of the crisis," the bank said.
