Translated material
"Petroff" second
As the Central Bank said in a statement, Petroff Bank’s license was revoked for failure to comply with laws and regulations. In particular, the size of its own funds fell below the minimum value, capital adequacy became less than 2%. “Petroff Bank pursued a high-risk lending policy and did not create adequate reserves for possible loan losses, which led to a complete loss of its own funds (capital),” notes the Central Bank. “The management and owners of Petroff Bank did not take effective measures aimed at restoring its financial position.” The temporary administration at the bank will work until a bankruptcy trustee or liquidator is appointed.
“Probably the last straw that broke the regulator’s patience was the late payment on a prolonged Central Bank loan of 1 billion rubles, committed by Petroff Bank in September,” says Maxim Osadchiy, head of the analytical department of the Corporate Finance Bank. -- As a result, overdue loans from the Central Bank increased from 150 million rubles. as of September 1 to 1.15 billion rubles. on October 1st. In addition, as of October 1, Petroff Bank owed the Central Bank another 2.618 billion rubles. for a non-overdue extended loan.” This January, Petroff Bank for the first time missed payment on an unsecured loan from the Central Bank for 4.293 billion rubles, received in December 2008, the analyst explains. In February, the Central Bank extended this loan.
The bank belongs to the Borodino group of companies owned by businessman Tigran Nersisyan. “Like Mezhprombank, owned by Senator Sergei Pugachev, Petroff mainly serves the financial flows of the group,” notes a member of the board of a private Russian bank. - Therefore, in this case we are also talking about the problems of shareholders of a credit institution, and not about problems in the banking market. Various companies are suing Borodino for billions of dollars, and the shareholders have no time to repay the Central Bank’s debt.”
At the end of the third quarter, Petroff Bank took 200th place in terms of assets in the Interfax-100 ranking. The bank was founded in 1993 and is a member of the Association of Russian Banks. This year, the National Rating Agency assigned it an individual credit rating of A (high creditworthiness, second level). However, on Friday the NRA canceled the rating “due to the expiration of the agreement and the inability to maintain the bank’s individual rating due to a number of negative factors.” In May, individual credit ratings were suspended and placed on a waiting list with an uncertain outlook.
“Petroff” will not create a burden on the deposit insurance fund, since the bank was not a member of the DIC and did not have the right to work with deposits of individuals, notes Mr. Osadchiy. “This revocation of the license does not pose a threat to the market, since the size of the bank is small and the revocation of the license was predicted.” Since the beginning of the year, the Central Bank has already revoked the licenses of 16 banks; in half of them, the amount of capital did not meet the Central Bank requirements introduced in January. The rest violated anti-money laundering laws. In addition, Novosibkoopbank decided to liquidate itself.