The Bank of Russia has revoked effective September 26, 2016 a banking license held by Voenno-Promyshlenniy Bank (VPB) (Moscow, Registration No. 3065), the regulator's press service reported.
The regulator explains its decision to take the last-resort measure, in particular, by the lending institution's inability to comply with federal banking laws and its statutory acts, because capital adequacy ratios dropped below 2%, a decline in equity (capital) beneath the minimum charter capital as set on the date of the bank's state registration and taking into account the numerous application during the year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
"Given the unsatisfactory asset quality VPB inadequately assessed related risks. Proper assessment of the credit risk and objective reflection of the asset value in the lending institution's financial statement led to the full loss of equity (capital). Furthermore, the banks failed to meet requirements of the laws aimed at counteracting legalization (laundering) of criminal income and the financing of terrorist acts at to timely provide information to the authorized body," the Bank of Russia pointed out.
To remind, the Bank of Russia introduced temporary administration at VPB on September 16, 2016. The Deposit Insurance Agency (DIA) was appointed to be in charge of the bank's temporary administration for a term of six months. The Bank of Russia pointed out that this decision was driven by a real threat to the interests of the bank's creditors and deposit holders.
"Temporary administration in charge of VPB's management, duties of which were assigned to the Deposit Insurance Agency (DIA) by Order OD-3121 issued by the Bank of Russia on September 16, 2016, after having begun the fulfillment of its duties encountered substantial difficulties that were driven by the actions taken by the bank's executives who created no conditions to provide documents certifying the title to the lending institution's assets. As a result, there was no possibility to rehabilitate the bank with the participation of the Deposit Insurance Agency," the Bank of Russia reported.
The activity of temporary administration was terminated due to the revocation of the license.
The Moscow Arbitration Tribunal registered a lawsuit filed by VPB against the Chief Directorate of the Central Bank of Russia in the Central Federal District of Moscow seeking to invalidate the defendant's decisions and actions. The lawsuit was registered on September 8, 2016. Reasons behind the lawsuit were not disclosed.
VPB is a member of the national deposit insurance system.
