The PR department of the Bank of Russia said that the Central Bank of the Russian Federation (CBR) cancelled the banking licenses held by Vostokkreditbank (Blagoveshchensk) and Soceconombank (Moscow).
CBR emphasized that Vostokkreditbank`s license was revoked due to the lender`s non-fulfillment “federal laws regulating banking activities and CBR statutory acts, instances when the bank submitted unreliable financials and its inability to meet monetary claims of creditors”.
“Vostokkreditbank on a long-term span credited the lender`s shareholders and affiliated companies businesses”, the CBR report states. Furthermore, the lending institution pursued a high-risk lending policy and did not form any adequate allowances against possible loan losses. At the moment the lender is virtually insolvent, the regulator statement says.
Soceconombank`s license was revoked due to the lender`s non-fulfillment “federal laws regulating banking activities and CBR statutory acts, instances when the bank submitted unreliable financials and its inability to meet monetary claims of creditors”.
Due to the loss of liquidity Soceconombank “failed to timely fulfill its obligations to creditors. Furthermore, the lending institution pursued a high-risk lending policy and did not form any adequate allowances against possible loan losses. When doing so, the bank forwarded misstated financials to the Bank of Russia and did not fulfill demands set forth in the supervisory body’s executive orders," the Bank of Russia said in a press release.
The temporary administration team commenced operations at both lenders until a bankruptcy manager or a liquidator is appointed. The powers and authority of the banks` executive bodies were suspended.
