CBR pulls banking license of Moscow's Krosna Bank, first revocation in six months

MOSCOW. Aug 12 (Interfax) - The Central Bank of Russia (CBR) has revoked the banking license of Moscow-based Krosna Bank in the first such revocation in six months.

The last time the CBR revoked a bank's license was in early February, when it stripped Conservative Commercial Bank of its license.

Krosna Bank broke banking laws, so measures were repeatedly taken against it in the past 12 months, including the imposition of restrictions on conducting certain banking transactions, the CBR said in a statement. The bank also committee violations in the area of laundering proceeds from criminal activities and financing of terrorism, the CBR said.

Krosna Bank has been steadily operating at a loss since 2019, and the CBR repeatedly demanded that it adequately assess the risks it assumed, the CBR said.

However, the lender "conducted transactions (deals) that ensured the amount of capital was artificially maintained to formally comply with prudential operating requirements," the CBR said, adding that Krosna Bank also "made questionable transactions aimed at moving money abroad."

The CBR has also annulled Krosna Bank's license to conduct professional activities on the securities market.

A temporary administration has been installed at Krosna Bank and it will remain in place until the appointment of a receiver or liquidator. The bank is a participant in the deposit insurance system.

Krosna Bank was Russia's 272nd largest lender by assets at the end of 2021, according to the Interfax-100 ranking. It was the 290th largest bank in Russia as of August 1, 2022, CBR data showed.

As of March 2021, Krosna Bank did not have a controlling shareholder. Its shares were distributed among a group of individuals.