The Bank of Russia has withdrawn a license held by Tatagroprombank (Registration No. 728, Kazan), the regulator's press service reported.
The decision was taken because the bank lost capital in full. The supervisory body has repeatedly taken measures of influence against the bank, including the ban to draw retail deposits.
"Tatagroprombank conducted operations to fund lending institutions that made up an informal banking group led by Tatfondbank. In consequence of provisions piled up against liabilities at Tatfondbank and Intekhbank, as their banking licenses were cancelled, the bank's capital became negative (around Rub 600 mln)," the press service reported.
In addition, Tatagroprombank failed to comply with legislation aimed at combatting legalization (laundering) of criminal income and terrorist funding when providing information to the authorized body.
The Bank of Russia emphasized that until now the lending institution's management and participants have not taken any measures to normalize its activities.
Tatagroprombank is a member of the national deposit insurance system.
In January and February 2017 the financial institution was among those banks that violated mandatory ratios. During 17 days of February the bank did not meet the capital adequacy ratio (N1), the long-term liquidity ratio (N4), the ratio for the highest amount of big credit risks (N7), and the ratio of use of the bank's equity to buy shares of other businesses (N12).
On December 20, 2016 Tatagroprombank saw an increase in corporate and household interest in closing deposit accounts ahead of schedule due to the problems faced by Tatfondbank and imposed a number of cash withdrawal restrictions. The bank set daily limits on cash withdrawals at Rub 10,000 ($150 or €150) for those who want to take their funds back ahead of schedule, and the limit of Rub 50,000 ($750 or €750) when clients are willing to take the money after deposit account agreements expire.