The Bank of Russia has revoked effective October 10, 2016 a banking license held by Bank Razvitie (Registration No. 2729), the regulator reported on its website.
The decision to take a last-resort measure was adopted because the lending institution failed to fulfill federal banking laws, and also the Bank of Russia's statutory acts, capital adequacy ratios fell below 2% and taking into account the fact that measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" were taken many times during the year.
Commercial Bank Razvitie pursued a high-risk credit policy by investing funds in weak quality assets. Meanwhile, the lending institution's capital adequacy ratio decreased to the critical level. The bank's executives and owners did not take sufficient measures to normalize its activities. Under the circumstances and based on Article 20 of the Federal Law "On Banks and Banking Activities" the Bank of Russia fulfilled its duty as to cancel the lending institution's banking license," the Bank of Russia pointed out.
A Banki.ru source previously said that the bank was cut off the Banking Electronic Speedy Payment (BESP) system. In mid-August, RAEX (Expert RA) downgraded the bank's creditworthiness rating to B (low level of creditworthiness) and withdrew it because the bank refused to be publicly rated any longer. Prior to rating withdrawal the bank's rating carried a negative outlook.
Bank Razvitie is a member of the national deposit insurance system.