The Bank of Russia has revoked effective January 16, 2016 a banking license held by Bulgar Bank (Registration No. 1917, Yaroslavl), the regulator's press service reported Monday.
As the regulator specified, the decision to cancel the bank's license was adopted because the lending institution failed to fulfill federal banking laws, and also the Bank of Russia's statutory acts, instances were established when the bank materially misstated financial reports, and taking into account the multiple violation during the year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)". In addition, the Bank of Russia took into consideration a real threat to the interests of the bank's creditors and deposit holders.
"The lending institution did not fulfill the supervisory body's demands to provide the Bank of Russia with reports that give a fair view of its obligations to households. Furthermore, due to the weak quality of the assets that did not generate any sufficient cash flow Bulgar Bank failed to meet creditor obligations on time. Since the beginning of 2017 the bank has actually stopped serving customers," the press release noted.
The bank's executives and owners did not take measures required to bring its activities back to normal, the Bank of Russia stated.
Bulgar Bank is a member of the national deposit insurance system.
In late 2016 Bulgar Bank was cut off the Banking Electronic Speedy Payment (BESP) system, and it was also said that it was not possible for the bank's customers to withdraw cash from check or card accounts at the lending institution's Kazan offices.
News broke last week that unknown people stole around Rub 20 mln from the Bulgar Bank office in downtown Moscow. The money was stolen during the period from December 31, 2016, but this was discerned only on January 10, 2017.
