The Bank “REGNUM” conducted high-risk lending policy connected with placement of funds into low-quality assets.
MOSCOW, 5 Feb. The Bank of Russia from February 5 revoked the license of the Moscow Bank “REGNUM” from the complete loss of capital, is spoken in the message of the regulator.
The decision to revoke the licence taken by the Central Bank due to the fact that the credit institution does not comply with standards of Federal laws regulating banking activity. According to the Central Bank, the Bank also submitted inaccurate reporting data.
“Credit organization conducted high-risk lending policy connected with placement of funds into low-quality assets. Adequate assessment of accepted risks and fair reflection of the value of Bank assets leads to a complete loss of his own funds (capital)”, — stated in the message.
As noted by the Central Bank, the Bank has not fulfilled the requirements of creating the necessary reserves for possible losses. In addition, the Bank was involved in questionable conduct of transit operations. The management and owners of the credit institution did not take effective measures on normalization of its work. The Bank appointed a temporary administration valid up to the date of appointment of the bankruptcy Trustee or liquidator.
The Bank is a participant of the Deposit insurance system. According to the Central Bank, by total assets “REGNUM Bank” on January 1, 2016 586 took place in the banking system of the Russian Federation.