The Central Bank of Russia has cancelled effective October 27, 2016 a banking license held by Westinterbank (Registration No. 3398). The relevant press release was posted on the regulator's website.
The decision to cancel the bank's license was taken as the lending institution failed to fulfill federal banking laws and the Bank of Russia's statutory acts, and measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" were taken given a real threat to the interests of the bank's creditors and deposit holders.
"While investing in weak quality assets, Westinterbank inadequately assessed associated risks. Owing to the fulfillment of the supervisory body's requirements to pile up loan loss provisions that are adequate to the accepted risks, reasons arose for the bank to take measures to forestall its insolvency (bankruptcy)," the regulator noted.
Westinterbank is a member of the national deposit insurance system.
In early October, Westinterbank was disconnected from the Banking Electronic Speedy Payment (BESP) system. The media previously wired that on September 12, 2016 Westinterbank stopped opening retail deposits. The bank explained this by the update of its deposit lineup and installation of new software. Moreover, Westinterbank informed customers that it abandoned plans to merge with Kamsky Gorizont, merger talks with which were conducted over the past few months.
