The Bank of Russia has withdrawn since October 4, 2017 license for banking operations of the Moscow “International stock Bank” (“Mfbank”), being the participant of system of insurance of contributions. The order of revocation of the license is published on the website of the Central Bank.
According to statements by total assets of the credit organisation on 1 September 2017 327 took place in the banking system of the Russian Federation.
The decision to revoke the license was made in connection with default by the credit institution Federal laws regulating banking activities. According to the Central Bank, the Bank has created a real threat to creditors and depositors.
Problems in activities of “MTBank” arose from the use of an extremely risky business model, which resulted in the formation of the balance of a significant amount of indebtedness of the companies having signs of a lack of viable economic activities. The Bank has systematically underestimated the value of the accepted credit risk and shied away from the performance of repeated requests, the Supervisory authority on the formation of the necessary reserves for possible losses by “technical” transformation of assets, indicates the Central Bank.
Currently, “Mfbank” actually ceased operations. Its financial position is characterized by the extremely low quality of assets and have elevated risks of complete loss of control and unfair actions of the management of the credit institution that ignored the requirements of the Supervisory body and, in some respects, wanted to deliberately bankrupt the Bank.
The Bank of Russia repeatedly applied in respect of “MTBank” measures of Supervisory response, including three times imposed restrictions on attraction of deposits. The management and owners of Bank didn’t take effective measures to normalize its activities.
In accordance with the order of the Bank of Russia in the “Mfbank” appointed a temporary administration of the validity period until the appointment of a bankruptcy Trustee or liquidator. The powers of the Executive bodies of the credit institution are suspended.
“International Fund Bank” was registered in December 1994. Credit organization had branches in the capital and the suburbs.