As of December 2, 2013 the Bank of Russia revoked a banking license held by Samara-based Volzhsky Social Bank (Registration No. 2428), said a press release posted on the regulator’s website.
The Bank of Russia explained its decision to apply the last measure of influence to the lending institution by the fact that Volzhsky Social Bank violated many times Russian laws, the regulator’s statutory acts, a decline in its equity below the minimal threshold set for charter capitals and a reduction in the capital adequacy ratio below 2%.
The Bank of Russia noted that the lender pursued a high-risk policy to place drawn funds. Based on Banki.ru data as of November 1, slightly over 32%, or Rub 2.47 bln, of the bank’s liabilities fell to retail deposits.
Furthermore, due to the loss of liquidity the lender failed to timely fulfill its obligations to creditors or deposit holders.
The bank suspended operations on November 26, 2013. Previously, on November 20, Valery Kuchkanov, the bank’s management board chairman, was found dead with a gunshot wound in his head in his house in Samara. A murder criminal case was initiated, investigation is under way. At that time the bank officially said that November 22—24 are days off for the bank’s employees due to the funeral ceremony (the only additional office remained operational). The bank planned to operate as usual since November 25.
