The CBR withdrew the license at Bank “Severo-East Alliance”

MOSCOW, August 21. /TASS/. The Bank of Russia withdrew on August 21, 2017 license for banking transactions from Moscow commercial Bank “Severo-Vostochny Alliance” (AKB “SVA”), which, according to statements by total assets on August 1 took the 250-th place in the Russian banking system. This is stated in the message controller.

According to the Bank, the business model of AKB “SVA” was aimed at serving the interests of its owners and was pronounced a captive nature. High-risk credit borrowers, directly or indirectly, the ultimate beneficiaries of the credit institution, and not engaged in real activity, led to the formation of the credit institution’s balance sheet a significant amount of “non-performing” assets. The Bank has systematically underestimated the value of the accepted credit risk and evaded the execution of the supervisor’s requirements on creating provisions for possible losses, adequate, taken risks, through technical transformation of assets.

As the regulator, the Bank “SVA” has been unable to timely fulfill liabilities to creditors, in connection with its activities, there are grounds for implementing measures to prevent insolvency (bankruptcy) and a real threat to the interests of its creditors.

The Bank of Russia has repeatedly used against AKB “SVA” measures of supervising response primarily associated with additional formation of reserves for possible losses on different assets. The lack of owners of the Bank’s intentions to implement real measures to stabilize its financial situation demonstrates the futility of further activity of the credit organization, said in a statement.

In accordance with the order of the Bank of Russia in AKB “SVA” appointed a temporary administration of the validity period until the appointment of a bankruptcy Trustee or liquidator. The powers of the Executive bodies of the credit institution are suspended.