The Central Bank of Russia has cancelled effective October 27, 2016 a banking license held by Kuban Universal Bank (Registration No. 2898). The relevant press release was posted on the regulator's website.

The decision to cancel the bank's license was taken as the lending institution failed to fulfill federal banking laws and the Bank of Russia's statutory acts, and measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" were taken given a real threat to the interests of the bank's creditors and deposit holders.

Kuban Universal Bank invested in weak quality assets and did not form any loan loss provisions adequate to the risks. Upon proper assessment of the accepted risks at the request of the supervisory body and reliable reflection of the bank's asset value reasons arose for the lender to take measures to prevent its insolvency (bankruptcy)," the regulator pointed out.

Kuban Universal Bank is a member of the national deposit insurance system.

Kuban Universal Bank was previously cut off the Bank of Russia's Banking Electronic Speedy Payment (BESP) system. In October 2016, the financial institution lost a lawsuit filed by the regional prosecutor's office. Pursuant to the court ruling, the bank will have to return shares of Gostiny Dvor Ekaterinodar OJSC that it received for the use on a gratuitous basis to the regional administration.