Tambang lost his license

The Bank of Russia on Monday, October 2, withdrew the license for banking operations of the Moscow joint stock Bank Tempbank. This was reported on the website of the regulator.

As noted, the business model of Tempbank has been focused on serving the interests of its owners. Credit borrowers, directly or indirectly, the ultimate beneficiaries of the credit institution and is not engaged in real activity, led to the formation of the balance of the Bank’s significant volume of distressed non-performing assets.

With a poor quality of Bank assets are inadequately assessed risks. The Agency on insurance of contributions to which the Bank of Russia entrusted the interim administration conducted a survey of the financial situation of Tempbank. The result was an objective reflection of the value of the assets in the financial statements, which led to a complete loss of capital.

The Central Bank has repeatedly applied to the Bank’s Supervisory response measures. including the restriction and a ban on attracting deposits of the population. The management and owners of Bank didn’t take effective action, aimed at normalizing its activity, notes the regulator. The implementation of the financial recovery procedure with the involvement of the DIA and creditors of the Bank was considered uneconomical.

The activity of the provisional administration to manage Tempbank, whose functions were assigned to the ASV is discontinued. Appointed a temporary administration until the appointment of a bankruptcy Trustee or liquidator. The powers of the Executive bodies of the credit institution are suspended.

Tempbank is the participant of system of insurance of contributions. The insurance case is considered to have occurred as of the date of introduction of the moratorium on satisfaction of creditors ‘ claims, that is 5 April 2017, which is also calculated insurance indemnity in respect of the Bank’s liabilities in foreign currency.

According to statements by total assets of the credit organisation on 1 September it was ranked 174-th place in the Russian banking system.