The Bank of Russia made a decision to block the banking license of Moscow-based Bank of Settlements and Savings, the regulator said on Monday.
The decision to withdraw the license was taken in connection with violations committed by the credit institution in the field of combating money laundering and terrorism financing, the Bank of Russia said, Tass reported.
Relevant compliance rules of the bank did not conform to requirements of regulatory acts of the central bank.
The bank was involved in doubtful operations of funds’ transfer abroad in huge amounts, the central bank said. The nonbank credit institution was dealing with doubtful transit operations with the ultimate goal of cash-out. Temporary administration was appointed in the bank and powers of executive authorities of the credit institution were suspended.
The bank takes part in the deposit insurance system.
Short-Term Liquidity
On July 15, the Central Bank of Russia determined ten systemically important banks subjected to additional equity and liquidity requirements in accordance with Basel III international standard, the regulator said.
Requirements are introduced in particular in respect of short-term liquidity and capital buffers. The list of ten banks comprises UniCredit Bank, Gazprombank, VTB, Alfa-Bank, Sberbank, Bank FC Otkritie, Promsvyazbank, Raiffeisenbank, Rosbank and Russian Agricultural Bank.
These ten banks account for more than 60% of assets in the Russian banking sector as of July 1, 2015, the central bank said.
Short-term liquidity indicator will be used from October 1, 2015. The minimal permissible value of the indicator will be set as 60% with 10 percentage points’ increment annually from January 1, 2016 until reaching 100% since January 1, 2019, the regulator said.
The capital conservation buffer is planned to be implemented in respect of all credit institutions on a consolidated basis for credit institutions being parents for banking groups and on an individual basis for credit institutions having no banking groups. The buffer will be equal to 0.625% of risk-weighted assets with 0.625% increment annually from January 1, 2016 until reaching 2.5% from January 1, 2019.
The countercyclical buffer is proposed to be set as 0% of risk-weighted asset value in 2016.
The Bank of Russia plans to introduce the loss absorbency surcharge stipulated by the Basel Committee on Banking Supervision for the above ten systemically important banks as 0.15% of risk-weighted assets value from January 1, 2016, with the further increase to 1% from January 1, 2019.
