The Bank of Russia has revoked as of September 8, 2015 a banking license held by Profit Bank (Registration No. 3234, based in Moscow), the regulator's press service reported.

This decision was taken due to the non-fulfillment by the lender of the federal laws regulating banking activities and CBR's statutory acts, and the application of measures stipulated in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".

"Profit Bank conducted a high-risk lending policy and compiled no loan loss provisions adequate to the accepted risks. The formation of adequate provisions at the request of the supervisory body resulted in the loss of a substantial portion of the bank's capital and, as a consequence, in the occurrence of reasons to take measures to prevent insolvency," the Bank of Russia noted.

Furthermore, the lending institution fulfilled its obligations to the creditors not on time, and also failed to comply with the restrictions imposed by the supervisory body on separate kinds of operations. The bank's executives and owners took no measures to bring its activities back to normal.

Profit Bank was not a member of the deposit insurance system.

As previously reported, in late July Profit Bank began to process payments on a manual basis, with payments delayed by one or two days. Since July 20, 2015 Profit Bank has been cut off the Banking Electronic Speedy Payments (BESP) System.