On February 10, 2012 the Central Bank of Russia revoked a banking license held by Bank Okhotny Ryad, based in Moscow, the Bank of Russia said in a press release.
“The decision to take the measure of last resort — to cancel a banking license — was made by the Bank of Russia as Bank Okhotny Ryad failed to comply with the federal laws regulating banking business and the Bank of Russia’s statutory acts, the bank is unable to meet monetary claims of creditors and also taking into account the application of the measures stipulated in the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” many times during a year," the regulator’s PR department noted.
“Due to the loss of liquidity the lender failed to timely fulfill its obligations to creditors, and also did not observe required ratios. The bank’s management and owners took no measures to restore the bank’s financial standing. Under the circumstances the Bank of Russia was required to revoke the lending institution’s banking license," the regulator emphasized in the press release.
The temporary administration team commenced operations at the bank until a receiver or a liquidator is appointed. In accordance with the federal laws the powers and authority of the lending institution’s executive bodies were suspended.
As previously wired, Bank Okhotny Ryad has been unable to return retail deposits for the second straight week. First complaints of the bank’s deposit holders appeared in Banki.ru’s People’s Rating on January 30, 2012. The lending institution also refused to accept money to add to current deposit accounts or open new deposit accounts, open-deposit-account offers disappeared from its web site. By law the regulator can revoke a license if a lending institution cannot return money to deposit holders within 14 days.
Based on Banki.ru data, as of January 1, 2012 the lender’s net assets stood at Rub 1.19 bln (No. 695 in Russia), equity (calculated in line with CBR requirements) totaled Rub 220 mln, the credit portfolio amounted to Rub 1.05 bln and obligations to households equaled Rub 570 mln.
Bank Okhotny Ryad is a member of the national deposit insurance system.
