The Bank of Russia has revoked effective October 25, 2016 a banking license held by Financial Capital (Registration No. 3288), the relevant press release was posted on the regulator's website.

The decision to take the last-resort measure was adopted because the lending institution failed to fulfill federal banking laws or the Bank of Russia's statutory acts, has violated many times during the year requirements of the Federal Law "On Counteracting Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts", and also failed to fulfill monetary claims of creditors, and taking into consideration the application on numerous occasions of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".

Financial Capital conducted a high-risk credit policy by investing funds in weak quality assets. Following the additional formation of loan loss provisions at the request of the supervisory body, reasons arose to take measures to prevent the bank's insolvency (bankruptcy). Due to the unsatisfactory quality of assets that did not generate any sufficient cash flow, the bank failed to timely fulfill obligations to creditors," the Bank of Russia noted.

Financial Capital is a member of the national deposit insurance system.

The media previously reported that Saint Petersburg-based Financial Capital was cut off the Banking Electronic Speedy Payment (BESP) system. Moreover, during 28 days of September the bank violated the current liquidity ratio (N3). Financial Capital began October without violations, although its N3 is still not quite comfortable (51.22% against the minimum 50% threshold).