The Central Bank of Russia has withdrawn a banking license held by Maikop-based Joint Stock Commercial Bank Novatsia (Registration No. 840), the regulator's press service reported.
The regulator decided to resort to the last measure as the lending institution failed to comply with federal banking laws and also the Bank of Russia's statutory acts, and due to the application of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", and taking into account a real threat to the interests of the bank's creditors and deposit holders.
"The bank pursued a high-risk credit policy, investing funds in weak quality assets. The adequate assessment of the accepted risks gave rise to the measures to prevent the bank's insolvency (bankruptcy). Moreover, due to the loss of liquidity the lending institution was unable to timely meet creditor obligations. The bank's executives and owners did not take measures required to bring back its operations to normal," the Bank of Russia pointed out.
Bank Novatsia is a member of the national deposit insurance system.
