The Bank of Russia has withdrawn effective December 29, 2016 a banking license held by commercial bank Red Gates (Registration No. 2472), the regulator's press service reported.

The regulator decided to take the last-resort measure because the bank failed to fulfill federal banking laws, and also its statutory acts, and the Bank of Russia applied measures that are 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 and deposit holders.

"The bank pursued a high-risk credit policy by investing money in poor quality assets. As a result of adequate assessment of the accepted risks the lending institution saw reasons to take measures to prevent its insolvency (bankruptcy). In addition, due to the loss of liquidity the bank was unable to timely meet obligations to creditors. The bank's management and owners did not take measures required to normalize its activities, the press service said.

Red Gates is a member of the national deposit insurance system.

The media previously wired that Red Gates was cut off the Banking Electronic Speedy Payment (BESP) system, a market source told

"The bank has been cut off the system today, in the first half of the day," the source said on December 23.

To remind, the lending institution has lately not conducted operations with client accounts. "Operations on client accounts are temporary not conducted, we provide no funds from deposit accounts. The bank has financial problems," said an employee from the bank's retail operations department.