The Bank of Russia revoked the banking license held by lending institution MFT-Bank, the regulator’s PR department reported.
“The Bank of Russia decided to apply the last resort — to cancel a banking license — due to the non-fulfillment by the lender of the federal laws regulating banking activities and CBR statutory acts, identified instances when materially misstated reports were submitted, the failure to meet monetary claims of creditors and fulfill the obligation of making mandatory payments, and also taking into account the application of measures stipulated by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” during the year on numerous occasions”.
The Bank of Russia pointed out that due to the loss of liquidity the lender failed to timely fulfill its obligations to creditors. At the same time, MFT-Bank forwarded misstated financials to Bank of Russia and did not fulfill requirements of the regulator’s orders. The lending institution’s management and shareholders took no efficient measures aimed at solving the problem. Under the circumstances and in accordance with the Federal Law “On Banks and Banking Activity” the Bank of Russia exercised its duty to revoke the banking license.
A temporary administration team was appointed at MFT-Bank until the appointment of a receiver in accordance with the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions” or a liquidator in line with Article 23.1 of the Federal Law “On Banks and Banking Activity”. In accordance with the federal laws the powers and authority of the lending institution’s executive bodies were suspended.
MFT-Bank is a member of the national deposit insurance system. The revocation of a banking license is an accident insured as provided for by Federal Law #177-FZ “On Insuring Household Deposits Held at Banks of the Russian Federation”.
