The Central Bank of the Russian Federation cancels the license held by Yakutsk-based Bank Sir starting December 10, the PR department of the Central Bank of the Russian Federation reported.
CBR decided to strip the lender of its license due to the non-fulfillment of federal laws regulating banking activities and CBR statutory acts, and the bank’s failure to meet monetary claims of creditors. The regulator also took into account the application on numerous occasions during the year of the measures stipulated by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”.
CBR said in a statement that because of lost liquidity Bank Sir failed to timely fulfill its obligations to creditors and deposit holders. Moreover, the bank pursued a high-risk lending policy, formed no adequate reserves for possible loan losses and did not comply with accounting regulations. In addition, the lending institution did not fulfill demands set forth in CBR orders.
A temporary administration is appointed at Bank Sir effective December 10 until the arbitration tribunal issues a ruling to declare the lending institution bankrupt and initiate bankruptcy proceedings (appoint a bankruptcy manager) or until the arbitration tribunal’s ruling on the appointment of the liquidator takes force.
Bank Sir 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”.
