The Bank of Russia has withdrawn effective November 18, 2016 a banking license held y Bank Metropol (Registration No. 16 394, Moscow), the regulator's press service reported.
The Bank of Russia 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, and following the application of the 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.
"While investing funds in weak quality assets Bank Metropol inadequately assessed related risks. Consequent on the fulfillment of the supervisory board's requests to compile required loan loss provisions that are adequate to the accepted risks, on a number of occasions the lending institution saw grounds to take measures to prevent its insolvency (bankruptcy)," the regulator said in a press release.
Moreover, as the Bank of Russia specified, Bank Metropol was involved in suspicious transit operations.
Bank Metropol is a member of the national deposit insurance system.
News broke on November 17 that the Bank of Russia switched the bank off its the Banking Electronic Speedy Payment (BESP) system.
In October, the bank was among those that violated required ratios. Specifically, on October 6 and October 7 the bank breached the capital adequacy ratio (N1), the total capital adequacy ratio (N1.1), the core capital adequacy ratio (N1.2), the major credit risk ratio (N7), the total risk ratio for the bank's insiders (N10.1) and the ratio of the bank's own funds used to buy shares of other legal entities (N12).
In the People's Rating section on Banki.ru the bank's clients said they found it difficult to replenish earlier opened deposit accounts.
