The Bank of Russia has cancelled banking licenses held by Bank Universal, based in Pervouralsk (Sverdlovsk region), and International Bank Senator (Moscow), the PR department of the Central Bank of the Russian Federation reported.
The lenders’ licenses were cancelled due to the non-fulfillment of federal laws regulating banking activities and CBR statutory acts, the inability to meet monetary claims of creditors and make mandatory payments, 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”. The lending institutions lost liquidity and failed to timely make settlements under accounts of its creditors and deposit holders. Meanwhile, they violated accounting regulations and did not observe mandatory ratios.
Temporary administration teams were appointed for both banks until the appointment of receivers in accordance with the Federal Law “On Insolvency (Bankruptcy)” or liquidators in line with Article 23.1 of the Federal Law “On Banks and Banking Activities”. In accordance with the federal laws the powers and authority of the lending institutions’ executive bodies were suspended.
CBR noted in a statement that Bank Universal is a member of the national deposit insurance system. The revocation of a banking license is an accident insured as provided for by Federal Law #177-FZ “On Insuring Household Deposits Held with Banks of the Russian Federation”.
