he Bank of Russia made a decision to recall the banking license of Moscow-based Probusinessbank from August 12, the regulator said on Wednesday.
Russia’s Deposit Insurance Agency is vested with temporary administration functions, the Bank of Russia said.
The bank pursued a risky policy related to investment of funds into poor quality assets. The credit institution fully lost its equity as a result of forming provisions appropriate for undertaken risks, the Central Bank said. The management and owners of the credit institution failed to undertake effective measures to normalize operations of the bank.
The Bank of Russia simultaneously approved the plan of the Deposit Insurance Agency on participation in settlement of bank’s liabilities, including the competitive selection of a bank to acquire a portion of property and liabilities of Probusinessbank.