26 Jul 2019 11:23

CBR revokes license of RAM Bank, CCB member

MOSCOW. July 26 (Interfax) - The Central Bank of Russia (CBR) has revoked the license of RAM Bank to perform banking operations as of July 26, the CBR said in a statement.

"The Bank of Russia made this decision [...] based on the fact that RAM Bank decreased its loan loss provisions in order to hide its real financial position. The reflection in its financial reporting of its credit risks on the Bank of Russia's instructions revealed a significant (more than 20%) decrease in the capital of the credit organization, which represents a real threat to the interests of its creditors and depositors," the CBR said.

RAM Bank consciously concluded deals that allowed it to comply merely formally with requirements for the size of loan loss provisions and other requirements but violated federal laws and regulations of the Central Bank, according to the statement.

The bank participates in the Deposit Insurance System.

In Q1 2019, RAM Bank was Russia's 285th largest bank by assets, according to the Interfax-100 ranking prepared by the Interfax Center Economic Analysis.