The PR department of the Bank of Russia announced the cancellation of the banking licenses held by Slavyansky Bank and Trado-Bank.
The regulator adopted to take extreme measures “due to the non-fulfillment by the lenders of the federal laws regulating banking activities and CBR statutory acts, identified instances when unreliable reports were submitted and also taking into account the application of measures stipulated by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” during the year on numerous occasions.
Slavyansky Bank was reported to have pursued a risky lending policy and formed no adequate allowances against possible loan losses. “Furthermore, due to the loss of liquidity the lender failed to timely fulfill its obligations to creditors. The bank’s activity posed a threat to the interests of its creditors and deposit holders. Meanwhile, the lending institution’s management and shareholders took no efficient measures to solve the problem," the regulator emphasized. In the past 12 months many times enforcement procedures were applied to the lending institution for the violations committed.
Trado-Bank also failed to execute in a timely fashion its obligations to the creditors. The bank’s activity posed a threat to the interests of its creditors and deposit holders. Management and individuals who control Trado-Bank distanced themselves and failed to take any efficient measures aimed at restoring the bank’s financial standing," the regulator’s PR department added.
Temporary administration teams were appointed at the banks. In accordance with the federal laws the powers and authority of the lending institutions’ executive bodies were suspended. The central bank’s press service noted that both lending institutions are members of the national deposit insurance system and a revoked license is an accident insured.
