CBR revokes license of Northeastern Alliance Bank
MOSCOW. Aug 21 (Interfax) - The Central Bank of Russia (CBR) revoked the banking license of Northeastern Alliance Bank (SVA Bank) effective August 21, the CBR said in a statement.
"The bank's business model was oriented toward servicing the interests of its owners and had a pronounced captive nature. Highly risky lending to borrowers directly or indirectly related to the ultimate beneficiaries of the credit organization and not conducting actual activities led to the accumulation of a significant amount of 'nonworking' assets on the credit organization's balance sheet," the CBR said.
The bank systematically underreported the scale of assumed credit risk and avoided compliance with the demands of the regulator to make provisions for possible losses that were adequate for the assumed risks through "technical" transformation of assets, the CBR said.
The CBR said it repeatedly took oversight measures against SVA Bank, primarily related to making additional provisions for possible losses on various assets.
A temporary administration has been installed at the bank until a receiver or liquidator is appointed. The authority of the lender's executive bodies has been suspended in accordance with the provisions of federal laws.
The bank is not a participant in the deposit insurance system.
SVA Bank was Russia's 320nd largest bank by assets at the end of the first quarter of 2017, and 467th by retail deposits with 3 million rubles, according to the Interfax-100 ranking of the country's lenders. As of August 1, SVA Bank was the 250th largest lender in Russia by assets, CBR data show.