The Bank of Russia has revoked the licenses of two banks of Moscow and the Oryol Milbanke “Zerich”. This was reported on the website of the regulator.
Milbank spent “risky credit policy” and not “adequate to the accepted risks of reserves on possible losses on loans, said the Central Bank. He had not met the requirement of instructions of Supervisory authority about the imposition of restrictions on the exercise of certain operations, directed on protection of interests of depositors of the Bank. Management has not taken effective measures to normalize its activity.
“Zerich” “with a poor quality asset <…> inadequately assessed the risks taken”, said the Bank of Russia. Improper assessment of credit risk “led to a complete loss of own means (capital”), since the end of February 2016, said the Central Bank, “the credit institution has actually ceased operations and did not provide timely fulfillment of obligations to creditors”.
In addition, according to the regulator, “Zerich” failed to comply with the requirements of the legislation and Bank of Russia regulations in the sphere of combating legalization (laundering) of income obtained by criminal means and financing of terrorism. The activities of credit organizations has been focused on the questionable conduct of transit operations, said the Central Bank.
Both banks are participants of system of insurance of deposits. According to statements by total assets Milbank 341 took place in the Russian banking system, and the “Zerich” — 453-E.