The Bank of Russia has revoked effective October 5, 2016 a banking license held by Moscow-based iMoneyBank (Registration No. 1975, Moscow), the regulator's press service reported.
The regulator decided to take the last-resort measure because the lending institution failed to fulfill federal banking laws, and also the Bank of Russia's statutory acts, capital adequacy ratios dropped below 2%, and equity (capital) declined beneath the minimum threshold of the charter capital as set on the date of the lending institution's state registration, and taking into account numerous violation during the year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
"While investing funds in weak quality assets, iMoneyBank inadequately assessed related risks. The additional formation of provisions in required amounts led to the full loss of equity (capital). The lending institution's executives and owners did not take efficient measures to normalize its activities," the press release runs.
iMoneyBank is a member of the national deposit insurance system.
As Banki.ru previously found out, iMoneyBank acting management board chairman Igor Volchikhin sent a letter to the Bank of Russia in which the bank presented three rescue scenarios. According to the banking portal's two sources, the bank's management asked the regulator to review three baseline rehabilitation options.
For the record, iMoneyBank was cut off the Banking Electronic Speedy Payment (BESP) system on September 22. Moreover, iMoneyBank stopped opening deposit accounts and accepting money to be credited to deposits. Since September 19, 2016 households have been able to withdraw from deposit accounts over Rub 100,000 only based on preliminary requests.
iMoneyBank board chairman Alexander Kashapov explained in his Facebook* account that the bank's problems are caused by Finprombank's license revocation.
After iMoneyBank's license has been cancelled, 600 lending institutions presently operate in Russia.*Сервис/сервисы, принадлежащие Meta, признанной в РФ экстремистской организацией, деятельность которой запрещена на территории РФ
