The Bank of Russia has revoked a banking license from Omsk-based Bank Sootechestvenniki, the PR department of the Central Bank of the Russian Federation reported.
The lending institution’s license was cancelled due to the lender’s failure to comply with federal laws regulating banking activities and CBR statutory acts, identified instances of submitting substantially unreliable statements, a decline in the capital adequacy ratio below 2% and a contraction in equity capital below the minimal threshold set by CBR on the date of the lending institution’s state registration, the lender’s inability to meet monetary claims of creditors and also taking into account the application on numerous occasions during a year of the measures envisaged by the Federal law “On the Central Bank of the Russian Federation (the Bank of Russia)”.
CBR said in the press release that Bank Sootechestvinniki pursued high-risk lending policies that led to the loss of liquidity and own funds (capital), the inability to make settlements under clients’ accounts in a timely manner. This being the case, the lending institution provided the Bank of Russia with materially unreliable data concealing its poor financial standing and also took no measures to form adequate reserves for possible loan losses and ignored requirements of CBR orders.
Temporary administration commenced operations at the lending institution until a bankruptcy manager or a liquidator is appointed. The powers and authority of the lender’s executive bodies were suspended in line with the federal laws.
The lending institution is a member of the national deposit insurance system. A banking license cancelled is an accident insured covered by Federal law # 177-FZ “On Insuring Private Deposits Held with Banks of the Russian Federation”.
