License of Sevastopol-based VVB bank revoked

License of Sevastopol-based VVB bank revoked

Russia’s central bank has revoked a banking license from Sevastopol-based bank VVB, ranked 179th by assets as of March 1, the authority said.

In December 2017, the central bank introduced an interim administration at VVB for six months and a moratorium on fulfillment of creditor demands for three months. In March, the moratorium was prolonged for three months.

The authority said that Bank VVB did not comply with federal banking regulations and the central bank’s regulatory acts, including aimed at prevention of money laundering.

The bank failed to maintain the size of its shareholders’ equity above the minimum required level, and its capital adequacy ratio was below 2%. The proper disclosure of value of the bank’s assets in reports conducted by the interim administration resulted in the bank losing its shareholders’ equity.

The bank is a member of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation, PRIME reported.

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