The Bank of Russia withdrew the licenses for banking operations from the two Moscow banks – “Metrobank” JSC and “OPM-Bank” CB LLC - on Monday, June 1. This was reported on the website of the Central Bank.
The decision was made in connection with the failure of the credit institutions to comply with federal laws regulating banking activities, as well as the regulatory acts of the Bank of Russia. “Metrobank” conducted high-risk lending policy, as the regulator noted. Due to the bad quality of assets not generating enough cash flow, the credit organization regularly had cases of untimely fulfillment of obligations to creditors and depositors.
“OPM-Bank” also conducted high-risk lending policy. The organization deposited cash in low-quality assets, which created a threat of total loss of capital, as the Central Bank noted. The bank also did not fulfill the requirements of the supervisory body on the establishment of the necessary reserves for potential losses and provision of accurate reports.
Author: Anna Dorozhkina