The Central Bank of Russia has revoked a banking license held by Moscow-based Bank Zapadny (Registration No. 2598), a Top 150 financial institution in Russia.
The license was cancelled as the bank failed to fulfill laws regulating banking activities, the Bank of Russia’s statutory acts and also due to identified instances of material misstatement of financial reports.
The regulator also found out that the lending institution’s financial statements were materially misstated. Based on the regulator’s data, Bank Zapadny pursued a high-risk credit policy by investing the money in poor quality assets. The assessment of risks and reliable reflection of the bank’s asset value led to the full loss of equity.
Bank Zapadny, as the Bank of Russia reported, failed to fulfill the demand to compile required loan loss provisions. The bank’s management and owners took no measures to rehabilitate the bank.
Bank Zapadny is a member of the national deposit insurance system.
