Two banks lost their licenses

The Central Bank revoked the licenses of the European Bank of development of metallurgical industry and BDB Bank. As the key circumstances magnify themselves against the placement of funds in low-quality assets and not posing adequate to the accepted risks of the reserves.

The CBR revoked the licenses of 2 monetary organizations. According to the official news of the regulator, the activity will not be able to continue capital European Bank of development of metallurgical industry ("EUROMET") and Chuvash Bank "business to Business" (BDB): they are found to be in violation of law.

"EUROMET" came under punitive action the result of the conduct of high-risk lending policy and the placement of funds in low-quality assets. "EUROMET" with the 2nd half of August 2015 almost stopped servicing their own visitors. Management and the owner of the credit institution has not taken effective measures to normalize its activity. In current circumstances the Bank has fulfilled the responsibility for the revocation of a credit institution licensed to conduct banking operations", - said the press service of the regulator.

The Bank BDB accused of placing capital into low-quality assets. ""BDBA created adequate to the accepted risks provisions for possible costs on loans and other assets. Preparation of reserves in the necessary amount has led to the loss of the Bank, a significant part of the capital. Also, BDB not complied with the requirements of the legislation in the sphere of combating legalization (laundering) of earnings derived from criminal activity and financing of terrorism, in terms of reliability bound to the authorized body of information on transactions subject to mandatory control, while up to identify visitors. The managers and owners of the Bank had not taken active measures to normalise its activities", - said the Central Bank.

The disposal of the regulator in credit institutions appointed a temporary administration until the appointment of a bankruptcy Trustee or the announcement of a liquidator. Both banks included in the Deposit insurance scheme.

Remember that the revocation of the license for banking operations is considered an insured event in respect of liabilities on deposits defined in accordance with legislation. According to reliable information statements, on April 1, 2014 by total assets BDB Bank occupied 630-e, "EUROMET" - 255-th place in the Russian banking system.

sections: Economics, Accidents