The Bank of Russia decided to revoke the banking license held by Bank Pervomaysky (registration #652, Izhevsk) starting September 24, 2009, the PR department of the Central Bank of the Russian Federation reported.
The lender’s license was cancelled due to the non-fulfillment of federal laws regulating banking activities and CBR statutory acts, its inability to meet monetary claims of creditors and also taking into account the application on numerous occasions of the measures stipulated by the Federal Law “On the Central Bank of the Russian Federation”. “Due to the loss of liquidity the lending institution failed to ensure timely settlements under client accounts. At the same time, the bank formed no adequate reserves for possible loan losses, violated mandatory regulations and the procedure for forming mandatory reserves with the Bank of Russia," the central bank said in a press release.
A temporary administration commenced operations at the bank until a bankruptcy manager or a liquidator is appointed. In accordance with the federal laws the powers and authority of the lending institution’s executive bodies were suspended.
