The PR department of the Bank of Russia reported it cancelled a banking license held by Bank Euro Trade (Moscow).
The central bank pointed out that the license was cancelled following the lending institution’s non-compliance with federal laws regulating banking activities and CBR statutory acts, the failure to meet equity capital requirements and also taking into account the application of supervisory measures to the lender on numerous occasions. “The lending institution formed no adequate reserves for possible loan losses, violated accounting regulations and also broke the ratio for mandatory reserves deposited with the Bank of Russia, and also untimely fulfilled its obligations to specific creditors," the central bank said in a press release.
As of four reporting dates in 2009 the lender’s equity capital dropped below the level reported as of January 1, 2007. In addition, the bank took no measures prescribed by law to lift its equity to the level recorded on January 1, 2007, nor submitted a motion to the Bank of Russia seeking to have its status changed to a non-banking lending institution.
A temporary administration commenced operations at the bank until a bankruptcy manager or a liquidator is appointed. In accordance with federal laws the powers and authority of the lending institution’s executive bodies were suspended.
The PR department of the Central Bank of the Russian Federation emphasized that Bank Euro Trade is not a member of the national deposit insurance system.
