The Bank of Russia on the 19th of September revoked licenses of three banks – Joint-Stock Commercial Bank Basmannyi, Transinvestbank and Biznesbank. According to the External and Public Relations Department of the Bank of Russia, licenses of all the banks were revoked due to failure to observe the laws on banking activities and standard acts of the Bank of Russia. The three are participants of the deposit insurance system, and for all of them the temporary administration was appointed.
Transinvestbank as of the 1st of July was on 607th place in terms of assets and 414th in terms of individuals’ assets. Individuals held in the bank 1.25 billion rubles, 98% of which were placed for more than one year. Biznesbank (822nd place) as of that date had attracted 33 million rubles, Basmannyi (859th place) – 16.6 million rubles. Payouts to the depositors of all three banks can amount to 1.2 billion rubles, a representative of Deposit Insurance Agency reported.
In mid-August the Bank of Russia required Transinvestbank to stop working with deposits of individuals – this usually precedes revocation of the license. “Transinvestbank carried out high-risk credit policy and did not create adequate reserves for possible losses connected with loans in accordance with the requirements of the standard acts of the Bank of Russia”, - reported the banking regulator on Thursday. It accuses the bank of failure to comply with the prohibitions and limitations imposed by the Bank of Russia concerning some specific operations. It is also said that the bank’s operation “had high legal and reputation risks due to involvement in its clients’ significant amounts of questionable transactions including those connected with movement of money overseas”.
The owners of Transinvestbank are four companies established by Cyprus and Seychelles company incorporation and two citizens of Russia. Transinvestbank was founded back in 1995, and two years later Mosenergo became its member and it became the main settlement bank of the company. For 11 years the share of Mosenergo in the bank’s capital was 24.6 to 72.4 percent, and in 2008 the company withdrew from the bank’s capital.
According to the Bank of Russia, Joint-Stock Commercial Bank Basmannyi systematically violated instructions of the supervisory authority and restrictions on carrying out of some specific banking operations. “Furthermore Joint-Stock Commercial Bank Basmannyi did not create proper reserves”, - says the report on the Bank of Russia’s website. The Bank of Russia accused the management and owners of the bank of failure to take efficient measures to normalize its operation.