Bank of Russia revoked Energomashbank's license

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Bank of Russia revoked Energomashbank's license
Bank of Russia revoked Energomashbank's license
9 June, 09:49EconomyPhoto: Интерфакс
Petersburg Bank for Power Engineering (PJSC Energomashbank) lost its banking license, since it completely lost its own funds.

The Bank of Russia revoked Energomashbank's license from June 9, according to the regulator's website.

According to the Central Bank, Energomashbank completely lost its own funds, implemented a high-risk business model, underestimating the amount of reserves required for the formation of reserves for possible losses on loan and equivalent debt.

In addition, the bank violated federal banking laws and Bank of Russia regulations. Due to the violations committed by the bank, the regulator has repeatedly applied administrative measures to it over the past 12 months, which included, among other things, restrictions on attracting depositors' funds.

“Due to significant credit risks and low quality of assets, the fulfillment by Energomashbank of the requirements of the Bank of Russia on additional formation of the necessary reserves led to a complete loss of capital”, - the Central Bank said.

The regulator notes that Energomashbank was unable to timely fulfill its obligations to creditors due to the loss of liquidity. At the same time, the owners of the bank did not take sufficient measures to increase the financial stability of the credit institution.

In addition to the banking license, Energomashbank was deprived of its license to operate on the securities market.

Since the revocation of the license, a temporary administration of the Bank of Russia has been appointed to Energomashbank. Since Energomashbank is a member of the deposit insurance system, customers will be refunded within 1.4 million rubles per depositor. The deposit payment will be carried out by the State Corporation "Deposit Insurance Agency" (DIA). To help depositors, the DIA website contains information on the procedure for receiving payments.

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