CBR revokes license of Moscow's BFG-Credit Bank
KRASNOYARSK. July 27 (Interfax) - The Central Bank of Russia (CBR) has revoked the banking license of Moscow-based BFG-Credit Bank effective July 27, the CBR said.
"With unsatisfactory quality of assets, BFG-Credit inadequately assessed assumed risks. A proper assessment of credit risk and objective reflection of the value of assets in the lender's financial statement led to the complete loss of its capital. Given the significant imbalance between assets and liabilities, carrying out the procedure of the bank's financial recovery with the involvement of the Deposit Insurance Agency and its creditors was not possible on reasonable economic terms," the CBR said.
BFG-Credit is a participant in the deposit insurance system. The revocation of its license is an insured event in regard to the bank's obligations on retail deposits and calls for payment of compensation to the bank's depositors, including individual entrepreneurs, in the amount of 100% of the account balance, but no more than 1.4 million rubles per depositor.
BFG-Credit was Russia's 104th largest bank by assets at the end of the second quarter of 2016, according to the Interfax-100 ranking of the country's lenders. According to CBR data, BFG-Credit was the country's 99th largest bank by assets as of July 1.