The Bank of Russia decided to cancel the banking license held by Udmurtia Pension Bank (Izhevsk, registration #1764) starting June 17, the PR department of the Central Bank of the Russian Federation reported.

The regulator adopted this decision due to the non-fulfillment by the lender of the federal laws regulating banking activities and CBR statutory acts, identified instances when unreliable reports were submitted and also taking into account the application of measures stipulated by the Federal Law “On the Central Bank of the Russian Federation” within a year on numerous occasions.

Udmurtia Pension Bank pursued a risky lending policy and formed no adequate allowances against potential losses on loans. In addition, the lending institution provided the Bank of Russia with substantially misstated financials concealing reasons for the revocation of the banking license and also failed to comply with requirements of the supervisory body’s orders.

In accordance with the CBR order, a temporary administration commenced work at the bank until a bankruptcy receiver or a liquidator is appointed. The powers and authority of the bank’s executive bodies were suspended.

Udmurtia Pension Bank is a member of the national deposit insurance system. The revocation of a banking license is an accident insured as provided for by the Federal Law “On Insuring Household Deposits Held with Banks of the Russian Federation”.