The Central Bank of Russia has revoked banking licenses held by Bank Klientsky (Registration No. 2324), Old Kremlin (Registration No. 2657), Bank Gagarinsky (Registration No. 606), and Bank Eno (Registration No. 1988), the Bank of Russia's press service reported on Friday.
Based on the regulator's data, all four banks failed to fulfill federal laws regulating banking activities, and also the Bank of Russia's statutory acts. Old Kremlin, Bank Gagarinsky and Bank Eno failed to observe requirements of the Bank of Russia's statutory acts in the area of measures to counteract legalization (laundering) of criminal income as to identify their customers (Old Kremlin also failed to timely provide the authorized body with reliable data on operations that are subject to mandatory control). Bank Klientsky violated the Bank of Russia's statutory acts in relation to the measures to counteract legalization of criminal income, failing to provide reliable data on operations that are subject to mandatory control.
Furthermore, Bank Klientsky, holding poor quality assets, inadequately assessed its credit portfolio and related risks. "At the same time, the lending institution pursued an aggressive policy to draw retail deposits and failed to fulfill the supervisory body's demands aimed at restricting its activities," the regulator specified.
Old Kremlin and Bank Gagarinsky, based on the Bank of Russia's data, conducted a high-risk lending policy and piled up no loan loss provisions adequate to the accepted risks.
Bank Eno invested funds in poor quality assets and failed to form loan loss provisions that are adequate to the accepted risks. The lending institution's internal control regulations to counteract laundering of criminal income did not meet requirements of the Bank of Russia's statutory acts.All the banks that had their licenses revoked on Friday are members of the national deposit insurance system. The Deposit Insurance Agency (DIA) will select agency to pay insurance to the banks' customers no later than July 9, but payments will begin no later than July 17.