MOSCOW, April 17. /ITAR-TASS/. The Bank of Russia has revoked the banking license of Bashkortostan-based AF Bank, a report on the website of the Central Bank of the Russian Federation announces Thursday.

“The Bank of Russia announces a decision taken to revoke, effective from April 17, 2014, the license to carry out banking operations of the AF Bank OJSC credit-lending organization, Registration Number 991, the city of Ufa,” the report says.

According to the Bank of Russia, the AF Bank pursued a high-risk credit-lending policy connected with the allocation of monetary resources in low-quality assets. Upon meeting the requirements of the supervisory agency for the formation of reserves adequate to the accepted risks, the credit-lending organization has fully lost its own resources (capital).

“Besides, in view of the loss of liquidity, the Bank did not ensure fulfillment of obligations to the creditors and depositors on time. The management and owners of the Bank did not take measures for its financial repair,” the Bank of Russia’s report points out. “It did not appear possible to carry out a procedure for a financial recovery of the AF Bank with inviting the state-run corporation 'Agency for the Insurance of deposits' on reasonable economic terms.”

It is reported on the official website of the AF-Bank that the Kazakhstani financial holding Astana-Finance JSC is its main stakeholder. The AF-Bank was founded on October 30, 1990, as the Informsvyaz (information communications) design bureau. The charter of the bank was registered by the Bank of Russia on November 28, 1990, itemized as Number 991. Since 1997, the bank has been part of the banking group Alfa-Bank as the Alfa-Bank Bashkortostan OJSC. The general license for the transaction of banking operations of the AF- Bank OJSC is dated May 4, 2007.