The Bank of Russia has revoked effective July 28, 2016 a license held by Bank Terra (Registration No. 3476, Moscow), the regulator's press service reported.
The Bank of Russia adopted a decision to apply the last-resort measure as the lending institution failed to fulfill federal banking laws and also its statutory acts, and due to the application of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" taking into account a real threat to the interests of creditors.
While investing funds in weak quality assets, Bank Terra improperly assessed related risks.
After the multiple fulfillment of the supervisory body's requests to pile up required reserves against potential loan losses grounds arose in the lending institution's activities to take measures to prevent its insolvency (bankruptcy). The lending institution's management and owners took no efficient measures to normalize its operations.