The Bank of Russia has revoked a banking license held by Samara-headquartered Volgo-Kamsky Bank, the Bank of Russias press service reported.
The lending institution is a member of the national deposit insurance system.
As Banki.ru reported earlier, Volgo-Kamsky Bank began to encounter problems with the handling of payments and the closing of deposit accounts.
Inter-regional Volgo-Kamsky Bank for Reconstruction and Development (BKB) is one of the oldest Russian banks and quite a large universal regional bank. As of October 1, 2013 the banks assets equaled Rub 8 bln, capital was equal to Rub 900 mln and household funds in liabilities amounted to Rub 4.4 bln. During the first nine months of 2013 the lending institution posted a net loss of Rub 26.7 mln. As of early October 2013 the bank ranked tenth by assets in the Samara region (20 lending institutions are registered in the Samara region). The bank operates quite a broad network of divisions (19 sales offices apart from the head office). The most important source of funding the credit portfolio is retail deposits. They account for 54% of the financial institutions liabilities.
Volgo-Kamsky Bank had an active client base which included a lot of local enterprises and households. Based on the available data, the lending institution serves over 2,500 businesses from various economic sectors (Kinelenergo CJSC, Aviakor OJSC, SamaraSpetsTekhnika LLC, Rodnik OJSC, Universalnoye Burenie OJSC, KUB LLC, publishing house Samarsky Dom Pechati).
In line with DIAs data, payments to the banks deposit holders will begin no later than November 25. Until the specified date DIA will publish in the local media and will also post an official announcement on its website for the banks deposit holders indicating the place, time, form and the manner of accepting applications seeking insurance indemnity. All deposit holders to be established under the register will later be given notice of this via official letters to be posted.
DIA intends to use agent banks to promptly accept applications of households and make payments as soon as possible, such agent bank will be selected on a competitive basis no later than November 15.
Applications seeking insurance indemnity may be filed by deposit holders during the whole period of the banks liquidation that, on average, equals two years.