The Bank of Russia adopted a decision to revoke starting December 21, 2010 banking licenses held by Donbank (Kamensk-Shakhtinsky) and Russian-German Trade Bank (Moscow), the PR department of the Central Bank of the Russian Federation reported.
The regulator specified that the decision to apply the last resort — to cancel a banking license — was adopted 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.
In accordance with the CBR order, temporary administration teams commenced work at Donbank and Russian-German Trade Bank until a bankruptcy receiver or a liquidator is appointed. In accordance with the federal laws the powers and authority of the lending institutions’ executive bodies were suspended.
Donbank 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”.
