The Central Bank of the Russian Federation has deprived the Bank of Power Engineering (Energomashbank) of St. Petersburg of its banking license. This was reported on the website of the regulator on June 9.
The reasons for revoking the license were that Energomashbank had completely lost its own funds and was implementing a high-risk business model. The credit institution has repeatedly violated the laws of the Russian Federation regulating banking activities and the regulations of the Bank of Russia.
Due to the loss of liquidity, Energomashbank was unable to fulfill its obligations to creditors on time, while the bank’s owners did not take the necessary measures to improve financial stability in advance.
The report of the regulator noted that Energomashbank was also deprived of its license to operate in the securities market.
The regulator suspended the powers of the bank’s executive bodies, and a temporary administration was appointed.
In terms of assets, Energomashbank was ranked 145th in the Russian banking system.
Previously, the license was revoked from the Moscow RFI Bank. The credit institution violated federal laws regulating banking activities.