RIA NOVOSTI. The Central Bank of the Russian Federation has filed a bankruptcy with the Moscow Arbitration Court against Privatholdingbank, RIA Novosti reported.
The lender’s banking license was revoked on December 14 due to the non-fulfillment by Privaholdingbank of the federal laws regulating banking activities and CBR statutory acts and also taking into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)” within a year on numerous occasions.
According to CBR data, Privatholdingbank pursued a high-risk lending policy, investing funds on a regular basis in low-quality assets and failed to form adequate reserves against possible losses. The regulator noted in a press release that the lender submitted to the supervisory body considerably misstated financials that concealed its unsatisfactory financial standing.
