The Central Bank has withdrawn licences at two capital banks

The Bank of Russia revoked the license for banking operations at two Moscow banks — Millennium Bank and REGNUM Bank. On Friday, February 5, reported on the website of the regulator.

The decision on licence withdrawal is accepted in connection with default by banks of the Federal laws regulating banking activity and normative acts of the Central Bank, said in a statement.

Millenium Bank with a poor quality of assets is not adequately evaluated credit risks taken. Appropriate credit risk assessment on the request of the Supervisory authority identified the loss of your own funds (capital) of the Bank, said the Central Bank. In addition, in connection with loss of liquidity the Bank did not timely fulfill liabilities to creditors and the management and owners of the credit institution failed to take efficient measures to normalise its activities.

REGNUM Bank conducted high-risk lending policy connected with placement of funds into low-quality assets. Assessment of the risks and reliable reflection of the value of Bank assets leads to a complete loss of his capital, is spoken in the message of the regulator.

Thus, notes of the Central Bank, REGNUM Bank has not fulfilled the requirements of the Supervisory authority the establishment of necessary reserves for possible losses, reporting, reflecting its real financial position and the existence of grounds for revocation of licenses for banking operations. In addition, the Bank was involved in questionable conduct of transit operations.

Both of the banks – participants of system of insurance of Vladov. Revocation of license is insured as the law provides for the payment to the depositors of the Bank insurance compensation in the amount equal to 100% of the balance, but not more than 1,4 million rubles in aggregate per depositor.