MOSCOW, February 26. The Bank of Russia withdrew from 26 February 2016 the license for banking transactions from Moscow commercial Bank “Milbank”, CB “clearing House” and Orlovsky Bank “Zerich”, according to the Central Bank.
According to the regulator, “Milbank” conducted high-risk lending policies and create adequate accepted risks provisions for possible losses on loans.
See also
The banking system of the Russian Federation in 2015. Dossier
In this case the credit institution does not obey the 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. The management and owners of Milbank has not taken effective measures to normalize its activities, the report says.
In accordance with the order of the Bank of Russia, in the Milbank appointed a temporary administration. The powers of the Executive bodies of the credit institution are suspended.
The Central Bank also noted that the Bank “Zerich” unsatisfactory quality of assets not adequately assessed the risks taken. Proper evaluation of credit risk led to a complete loss of own means of Bank. In addition, the activities of credit organizations has been focused on the questionable conduct of transit operations.
Both lenders are a participant of the Deposit insurance system. According to statements by total assets of Milbank on February 1, 2016 341 took place in Russia’s banking system, “Zerich” – 453.
