The Bank of Russia has revoked effective February 16, 2017 a license held by North-West 1 Alliance Bank (Registration No. 766, Saint Petersburg), the regulator's press service reported.
The Bank of Russia decided to take the last-resort measure as the lending institution failed to comply with federal banking laws, and also the regulator's statutory acts, to timely fulfill the Federal Law "On Bankruptcy (Insolvency)", the Bank of Russia's demand to bring charter capital and equity (capital) into compliance, and taking into account repeated application during a year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
The bank invested funds in weak quality assets and inadequately assessed credit risks that it accepted. Upon fulfillment of the supervisory body's demand to compile necessary reserves against possible loan losses the lending institution's own funds declined to the level below the registered charter capital. The bank was unable to timely fulfill the regulator's order to bring its charter capital and own funds into compliance. The bank's management and owners did not take any efficient and sufficient measures to normalize its activity," said the press release.
North-West 1 Alliance Bank is a member of the national deposit insurance system.
On Tuesday, February 15, the financial institution was in part cut off the Bank of Russia's Banking Electronic Speedy Payment (BESP) system. The financial institution's call center employee told Banki.ru that online services provided to the bank's corporate customers were halted on February 1, 2017.
The media wrote in November 2016 about Forus Bank's reorganization through takeover of North-West 1 Alliance Bank.
