Northeast Alliance of CB

The Bank of Russia since August 21, 2017 revoked the license from the Moscow bank "Northeast Alliance". The decision from revocation of license is made  it is accepted because of non-execution by bank of the federal laws regulating banking activity and also regulations of the Bank of Russia, in view of existence of real threat to the interests of creditors.

The Central Bank explained that  the business model   of Northeast Alliance bank  was focused on service of interests of his owners, had the expressed captive character.

"High risk crediting of borrowers, directly or indirectly related to final beneficiaries of credit institution, and not performing real activity, led to education on balance of credit institution of considerable volume of "idle" assets", says the regulator. The bank systematically underestimated the value of the accepted credit risk and evaded from execution of requirements for formation of the reserves of possible losses adequate to the accepted risks, by "technical" transformation of assets, says the Central Bank. The regulator repeatedly applied to bank of a measure of supervising reaction.

According to the Central Bank,  the Northeast Alliance bank took the 250th place in a banking system of the Russian Federation on the value of assets. The credit institution was not a participant of deposit insurance system. The bank worked at the market since 1994, was guided by crediting of legal persons and security market.