The Bank of Russia took a decision to revoke starting December 19, 2008 banking licenses held by Zelak-Bank, Baltcreditbank and Net Oil Bank, the PR department of the Central Bank of Russia reported.
Net Oil Bank’s banking license was cancelled due to the establishment of facts that unreliable financial reports were submitted, the lending institution’s inability to meet monetary claims of creditors or fulfill the duty of making mandatory payments. Due to the loss of liquidity the bank failed to timely make settlements under client accounts while forwarding substantially unreliable reports to the Bank of Russia.
The license of Zelenograd Commercial Bank (Zelak-Bank) was cancelled owing to the lending institution’s failure to comply with federal laws that regulate banking activities and the Bank of Russia’s statutory acts, the establishment of facts that reports submitted contained sufficiently unreliable data, the capital adequacy ratio dropped below 2%, the amount of equity capital decreased below the minimal threshold as set by the Bank of Russia as of the date when the lending institution passed state registration, the lending institution’s inability to meet monetary claims of creditors or fulfill the duty of making mandatory payments, and also taking into account the application on numerous occasions within a year of the measures envisaged by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”.
Baltcredobank was stripped of its license owing to the non-fulfillment of federal laws that regulate banking activities and CBR statutory acts, the establishment of facts the lender’s reports were substantially unreliable, the bank’s failure to meet monetary claims of its creditors or fulfill the duty of making mandatory payments.
In accordance with the CBR order, temporary administrations were appointed at these three banks until the appointment in accordance with the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions” of a bankruptcy manager or a liquidator pursuant to Article 23.1 of the Federal Law “On Banks and Banking Activities”. The authority of the lending institution’s executive bodies was suspended in accordance with the federal laws.
The lending institutions are members of the national deposit insurance system. Revocation of the licenses is an insurance event provided for by Federal Law #177-FZ “On Insuring Private Deposits Held with Banks in the Russian Federation”.
