The Bank of Russia revoked the license of the Moscow Rosavtobank

The Bank of Russia revoked the license of the Moscow Rosavtobank

MOSCOW, March 4. The Bank of Russia has withdrawn from 4 March 2016 the license for banking transactions from Moscow commercial Bank “Rosavtobank,” said the regulator.

According to the Central Bank, Rosavtobank conducted high-risk lending policies and create adequate accepted risks provisions for possible losses on loans.

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Proper evaluation of credit risk led to a complete loss of own means (capital) of the Bank. In addition, the Bank failed to comply with the requirements of the legislation in the sphere of combating legalization (laundering) of income obtained by criminal means and financing of terrorism. The credit institution was involved in questionable conduct of transit operations.

The management and owners of the credit institution failed to take efficient measures to normalise its activities, the report says.

In accordance with the order of the Bank of Russia in Rosavtobank appointed a temporary administration. The powers of the Executive bodies of the credit institution are suspended.

Rosavtobank is a member of the Deposit insurance system. According to statements by total assets of 1 February 2016 254 took place in the banking system of the Russian Federation.


The revocation of the license of the insurance company

Also, the regulator by an order dated 3 March 2016 withdrew the license for implementation of voluntary property insurance limited liability company “Insurance investment company”. According to the Central Bank, the insurer had not complied with the requirements of financial stability and solvency in terms of order and conditions of formation of insurance reserves.

The company is required to adopt a decision on termination of the insurance business, to fulfill obligations arising from insurance contracts (reinsurance) contracts, transfer of obligations, accepted under insurance (reinsurance) and (or) termination of these contracts.

LLC “Insurance investment company” was established in 2001. The main direction of its activity is the insurance of risks in construction. The office of the insurer is located in Omsk, however, the company has operations throughout the country.

On 25 February, the regulator withdrew the license for implementation of insurance of insurance companies “Agros”, “invest-Garant” and “the Capital insurance and reinsurance center.” Reasons were also named non-observance of requirements of financial stability and solvency. In addition, the regulator suspended the licenses of insurance companies “insurance company Borovitskaya”, “invest-Reserv”, “Height”, “Gala” and “National insurance house”.

Statistics for 2015

In 2015, the Bank of Russia revoked the licenses of 102 insurance companies.

Of the total number of revoked licences had 76 directly to insurance companies, and 24 – to insurance brokers and 2 of the licence of a mutual insurance company. “In 57 insurance companies of temporary administration”, – explained in the Central Bank.

In the unified state register of insurance entities remained 338 insurance companies.