The PR Department of the Central Bank of the Russian Federation announced the cancellation of the banking licenses held by Uralfinprombank (Ekaterinburg) and Monetny Dom (Chelyabinsk).
The Bank of Russia adopted this decision, as the lending institutions failed to comply with the federal laws that regulate banking activities and CBR’s statutory acts, their capital adequacy ratios dropped below 2%, own funds declined below the CBR-imposed statutory level and also taking into account numerous applications during the year of the measures that are stipulated by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”.
Commenting on the revocation of Uralfinprombank’s licenses, CBR emphasized that “due to the actual absence of securities reflected in its books the lending institution really lost its own funds (capital) and failed to take measures to timely fulfill its obligations to creditors”. “The lender’s management and shareholders took no timely steps aimed at restoring its activities," the regulator said in a press release.
Based on CBR data, Monetny Dom “reflected in its books actually absent securities and did not form adequate reserves against possible losses under other assets, which resulted in the total loss of capital and liquidity”. “The lending institution’s management and shareholders took no efficient measures to solve the problem," the regulator’s PR department added.
The Central Bank of the Russian Federation also announced the introduction at both lending institutions temporary administration teams until a receiver or a liquidator is appointed. The powers and authority of the banks’ executive bodies were suspended.
Uralfinprombank and Monetny Dom are members of the national deposit insurance system.
