CBR revokes license of Moscow's Legion Bank
MOSCOW/KRASNOYARSK. July 7 (Interfax) - The Central Bank of Russia (CBR) has revoked the banking license of Moscow-based Legion Bank effective July 7, the CBR said in a statement.
"The main area of Legion's business was financing investment projects carried out in the interests of shareholders. Furthermore, the lending institution carried out measures aimed at avoiding compliance with the requirements of the oversight body for an adequate assessment of assumed credit risks. The creation of the necessary provisions for possible losses on a number of low-quality assets revealed that the bank had completely lost its capital. In addition, the financial position of the lending institution deteriorated significantly due to the loss of a large amount of material valuables from the bank's cash department," the CBR said.
A temporary administration has been appointed at the bank by order of the CBR dated July 7.
Legion, which is a participant in the deposit insurance system, was Russia's 145th largest bank by assets at the end of the first quarter of 2017, according to the Interfax-100 ranking of the country's lenders. CBR data show that Legion was the 157th largest lender in the country's banking system as of June 1.
