The Bank of Russia has revoked the banking license of Joint Stock Oil-Industrial Investment Commercial Bank (Nefteprombank) based in Moscow. The credit institution ranked 201st in the Russian banking system in terms of asset size, the regulator informed.
The Bank of Russia also cancelled Nefteprombank's professional securities market participant licence.
According to the Central Bank, high-risk lending policy pursued by Nefteprombank over 2020–2021 resulted in a considerable portion of potentially unrecoverable household loans on the credit institution's balance sheet. The said retail lending transactions had signs of attempts to siphon off funds, prejudicing the interests of creditors and depositors.
The Bank of Russia repeatedly sent orders to Nefteprombank to create additional loss provisions. Compliance with the above orders revealed the actual loss of equity by the bank.
The Bank of Russia will submit the information on the bank's transactions having signs of criminal offences to law enforcement agencies.
The Bank of Russia appointed a provisional administration to Nefteprombank for the period until the appointment of a receiver or a liquidator. In accordance with federal laws, the powers of the credit institution's executive bodies were suspended. Nefteprombank is a participant in the deposit insurance system.
