The Bank of Russia took a decision to revoke as of October 29, 2013 a banking license held by Tula-based Bank Pervy Express (Registration No. 3237), the regulator’s press service reported.
CBR noted that the decision was adopted as the lending institution failed to comply with federal laws and the regulator’s statutory acts. It was also established that the bank’s financial statements were substantially unreliable and the measures stipulated by the Federal Law “On the Bank of Russia” were applied to the bank many times during the year.
Based on the regulator’s data, Bank Pervy Express “was deeply involved in lending businesses of the bank’s owners”. In addition, the Bank of Russia attributes creditworthiness problems to the poor quality of the assets. Financial statements, which were submitted to the Bank of Russia, concealed the loss of capital, while the lending institution’s management and owners took no decisive measures to stability the bank’s financial standing.
A temporary administration commenced operations at the bank until a bankruptcy manager or a liquidator is appointed. The powers and authority of the lending institutions’ executive bodies were suspended.
Bank Pervy Express is a member of the deposit insurance system.
Last week the bank said it experienced technical problems and ceased cash withdrawals via ATMs. The lending institution pledged to get back to normal after its database is checked. The media reported that the bank’s management board chairman Konstantin Tomenchuk stepped down.
On Monday Bank Pervy Express reported that the Bank of Russia imposed a number of restrictions on the bank’s operations. For this reason AK&M downgraded its rating on the bank from A to B, cutting the outlook from stable to negative. In anticipation of the regulator’s decision the bank’s clients gathered near the bank’s headquarters.
Panic spilled over to deposit holders of the region’s other lending institutions. As Tulskiy Promyshlennik’s deputy management board chairwoman told Banki.ru, spreading rumors could pose a threat to the financial institution’s creditworthiness. “We therefore call authorities to pay attention to the situation and eliminate panic," she said.
