The Bank of Russia has revoked effective March 4, 2016 a banking license held by Rosavtobank (Registration No. 2767), the regulator's press service reported.

The Bank of Russia explained its last-resort decision by the bank's failure to fulfill federal laws regulating banking activities and also its statutory acts, as capital adequacy ratios dropped below 2%, equity fell beneath the minimum charter capital amount as set on the lending institution's state registration, taking into account the multiple application during a year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" and given a real threat to the interests of creditors and deposit holders.

"Rosavtobank conducted a high-risk credit policy and created no loan loss provisions adequate to the accepted risks. Proper assessment of the credit risk led to the full loss of the bank's equity (capital). In addition, Rosavtobank did not comply with requirements of laws counteracting legalization (laundering) of criminal income and the financing of terrorist acts, including to timely provide an authorized body with information on operations that are subject to mandatory control. At the same time, the bank was involved in suspicious transit operations," said the press release.

Rosavtobank is a member of the deposit insurance system.

The bank had been inspected by the Bank of Russia since February 11, 2016. On Wednesday, March 2, Rosavtobank stopped serving households with regard to deposits, and earlier the financial institution suspended bank card services.

Banki.ru users wrote in the People's Rating that the bank's plastic cards cannot be used, and online services as well. Calls by a Banki.ru correspondent to the lending institution's management remained unanswered. Since February 15, 2016 the bank has stopped opening deposit accounts, citing technical problems.

Russian rating agency RAEX (Expert RA) cut in February Rosavtobank's creditworthiness rating to B+ (quite low level of creditworthiness) and withdrew it as the financial institution refused to be publicly rated any longer.

In mid-January Rosavtobank failed to execute the second part of a repurchase transaction for a total of Rub 2.2 bln. However, later the bank said on the website that on January 14, 2016 all its obligations under a repurchase transaction to the Central Bank of Russia were fully settled.