Cbank revokes license of BFG-Credit Bank, Russia’s 99th largest

MOSCOW, Jul 27 (PRIME) -- The central bank has revoked a banking license from BFG-Credit Bank, Russia’s 99th largest by assets as of July 1, the regulator said in a statement Wednesday.

In April, the central bank introduced a provisional administration at Moscow-based BFG-Credit Bank for six months. Later, the regulator imposed a 3-month moratorium on redemption of BFG-Credit Bank’s liabilities to creditors. In May, the Deposit Insurance Agency (DIA) said it will redeem around 22 billion rubles to about 44,800 depositors of the bank.

BFG-Credit violated central bank’s regulatory ratios, as its capital adequacy ratio fell to below 2% and shareholder equity fell below the capital figure. The bank did not duly estimate its risks and lost its equity after proper risk assessment and reflection of asset costs in its report.

The disparity between the bank’s liabilities and assets left no possibility of a financial bailout by the DIA, the central bank said, adding that the agency continues redemption of deposits to the bank’s clients.

(65.7408 rubles – U.S. $1)

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