The Bank of Russia has revoked the license to carry out banking operations from Energomashbank from St. Petersburg, according to the regulator’s website. The credit institution ranked 145th in the Russian banking system in terms of assets.
The Central Bank revoked the license because Energomashbank completely lost its capital, understated the required reserve for debts and implemented a high-risk business model, and also violated federal laws and regulations of the Central Bank. The bank lost liquidity and was unable to fulfill obligations to creditors on time. No measures were taken to improve the financial stability of the credit institution.
The license to carry out professional activities by Energomashbank in the securities market has also been revoked.
The interim administration of the Central Bank has been appointed to the credit institution. The bank is a member of the deposit insurance system. The website of the Deposit Insurance Agency reports that payments to depositors will begin no later than June 23, 2021.