Bank of Russia withdraws Enisei license

The Central Bank of Russia has revoked effective February 9, 2016 a license held by Commercial Bank Enisei (Registration No. 474, Krasnoyarsk), the regulator’s press service reported.

The Bank of Russia decided to take the last-resort measure as the lending institution failed to comply with federal banking laws, CBR statutory acts, instances were established that the bank provided materially misstated financial data, and taking into account the multiple use during the year of the measures provided for the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” and a real threat to the interests of the bank’s creditors and deposit holders.

“The lending institution pursued a high-risk credit policy by investing the money in weak quality assets. The adequate assessment of accepted risks and reliable reflection of the bank’s asset value led to the full loss of own funds. Meanwhile, the bank failed to fulfill the supervisory body’s demands to create required loan loss provisions, and also to provide financial statements reflecting its real financial standing and the presence of grounds to withdraw a banking license,” the regulator said in a press release.

The lending institution’s management and owners did not take efficient measures to normalize its activities, the Bank of Russia emphasized.

Commercial Bank Enisei is a member of the national deposit insurance system.

The Arbitration Tribunal of the Krasnoyarsk region previously overturned some restrictions that the Bank of Russia imposed on the bank. For example, the effect of the Bank of Russia’s order to ban the transfer of funds at the request of businesses to the budgets at all levels of the Russian budget system and budgets of state off-budget funds was to be suspended until a court ruling. In addition, restrictions imposed on the lending institution’s operations to give cash to the bank’s customers to the extent preventing the bank from fulfilling its obligations to businesses, households and individual entrepreneurs were to be halted.

Russian rating agency RAEX (Expert RA) downgraded on February 3, 2017 Enisei’s credit rating to C+, reiterating a negative rating outlook. The key factor determining the bank’s rating downgrade was the violation of its operating activities (on January 25, 2016 the Bank of Russia imposed a ban on operations related to accounts and deposit accounts at Enisei, and on January 31, 2017 the bank imposed restrictions on funds to be given to deposit holders). “The agency assesses as high the risk of default on the bank’s obligations, which stipulates the negative rating outlook,” said the press release.

Enisei has been cut off the Banking Electronic Speedy Payment (BESP) system since February 1, 2017.


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