As of August 27, 2015 the Bank of Russia has revoked a banking license held by Moscow-based Bank Euromet (Registration No. 2902), the Bank of Russia's press service reported.

Bank Euromet violated federal laws regulating banking activities and CBR's statutory acts, all the bank's capital adequacy ratios dropped below 2%, while its equity (capital) fell below its minimum charter capital as set on the date of its state registration, the Bank of Russia numbered common grounds for license revocation.

Bank Euromet pursued a high-risk lending policy by investing the money in poor quality assets, the regulator specified. The fulfillment of the supervisory body's demands to form provisions adequate to the accepted risks led to the full loss of the bank's equity (capital).

Moreover, since the second half of August the lender has virtually ceased to serve customers. The lending institution's executives and owners took no efficient measures to take its activities back to normal, the regulator specified.

The bank is a member of the deposit insurance system.

Based on Banki.ru data, Bank Euromet was switched off the Bank of Russia's e-payment system on August 17.

Bank Euromet, which is controlled by businessman and real estate developer Dmitri Skopinov, was probably involved in an investment company's fraud case, Sabina Khasanova, head of the news & research department at Banki.ru, assumed.

The company was provided with a land plot to build a premium residential facility, managed to draw in around Rub 2 bln from individual interest holders and took out many loans. As a result, most of the drawn funds vanished, and construction halted after the working trench was dug out. The investment company was declared bankrupt in 2013, and aggregate claims to the company exceed Rub 2.5 bln. The funds, using which apartments were paid, went through several intermediaries, while payments between firms were carried out via Bank Euromet.

It is quite likely, Khasanova wrote, that it is the bank's involvement in this construction story that led to the problems which the lending institution faced in August.