The PR Department of the Bank of Russia said it has cancelled a banking license held by Wolga Deutsche Bank (WDB), based in Saratov. “The lending institution’s banking license was revoked due to identified instances when the bank provided substantially unreliable reports, a decline in the capital adequacy ratio below 25% and equity capital below the CBR minimal threshold established at the time of the lending institution’s state registration," the Bank of Russia said in a press release.
The central bank’s department pointed out that “pursuing a high-risk lending policy the bank fully lost own funds (capital)”. “At the same time, the lending institution formed no adequate reserves for possible loan losses or complied with mandatory ratios and submitted considerably unreliable financial statements to the Bank of Russia," the PR department added.
The Central Bank of Russia and the Deposit Insurance Agency (DIA) performed valuation of the lending institution’s financial standing and came to conclusion that there are no economic possibilities to rehabilitate the bank. A temporary administration commenced work until a bankruptcy manager or a receiver is appointed. The powers and authority of the bank’s executive bodies were suspended.
Wolga Deutsche Bank is a member of the national deposit insurance system and the revocation of a license is an accident insured, the PR department noted.
