The Bank of Russia has revoked effective September 19, 2016 banking licenses held by Moscow-based Rostinterbank (Registration No. 226) and Finprombank (Registration No. 2157), and also by Regional Commercial Bank (Registration No. 836, based in Dimitrovgrad (the Ulyanovsk region)), the regulator's press service reported on Monday.
The Bank of Russia specified that the decision to cancel the licenses was taken because the lending institutions failed to fulfill federal banking laws and the Bank of Russia's statutory acts, and also because the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" were taken.
Rosinterbank's capital adequacy ratios fell below 2%, while its equity dropped beneath the minimum charter capital as of the lending institution's state registration date, the Bank of Russia emphasized in a press release.
Furthermore, the bank failed to meet requirements of legislation and of the Bank of Russia's statutory acts aimed at counteracting legalization (laundering) of criminal income and the financing of terrorist acts as to timely and qualitatively provide authorized bodies with information, while its internal control regulations in this area did not meet the requirements of the regulator's statutory acts.
The temporary administration that was appointed at Rosinterbank "from the first day of activities has encountered facts when the bank's executives prevented it substantially from doing its work, namely digital databases and documents confirming ownership rights to the assets were not provided". "Based on the foregoing, there was no possibility to rehabilitate Rosinterbank with the participation of the Deposit Insurance Agency (DIA)," the regulator noted.
The Bank of Russia explains its decision to cancel Finprombank's license, in particular, by the bank's inability to meet monetary claims of creditors. "Due to the unsatisfactory quality of the assets that generated no sufficient cash flow, Finprombank untimely met obligations to the creditors," the regulator specified in the press release.
At Regional Commercial Bank the Bank of Russia found "a real threat to the interests of creditors and deposit holders". The bank failed to meet requirements of the laws aimed at counteracting legalization (laundering) of criminal income and the financing of terrorist acts as to provide reliable information on operations that are subject to mandatory control to an authorized body. Moreover, the lending institution's internal control regulations in this area did not meet the Bank of Russia's requirements.
All three banks are members of the national deposit insurance system. The payment of compensation to their deposit holders will begin no later than October 3, 2016, DIA reported.
The media wired last week that Finprombank requested the Bank of Russia to cancel or revoke its banking license, and in this connection the bank planned to hold an extraordinary shareholders meeting on October 14, 2016. Meanwhile, a Banki.ru source who is familiar with the situation said that the bank still expects to be rehabilitated using shareholder funds. The media also reported that Finprombank introduced a preliminary list of individuals who want to take their money back. Meanwhile, as of September 1, 2016 the amount of unmade payments at Finprombank increased to Rub 1,567 mln due to the lack of funds. The media wired quoting sources that during an inspection the Bank of Russia revealed a gap of Rub 27 bln in the bank's balance sheet.
On September 14, 2016 the Bank of Russia cut Rosinterbank off the Banking Electronic Speedy Payment (BESP) system, Banki.ru sources said. The media also reported that the bank suspended wire transfers and payments, bank card services and introduced a procedure for making a preliminary list of those who want to close their deposit accounts. The Bank of Russia appointed temporary administration at Rosinterbank on September 15, with its functions imposed on the DIA. Meanwhile, a source familiar with the situation at Rosinterbank said that an inspection at the bank which began late on September 13 could have been driven by the regulator's intention to assess the likelihood of accounts that the bank holds off its balance sheet.
