RIA NOVOSTI. The Moscow Arbitration Court has upheld an application submitted by the Central Bank of the Russian Federation seeking to declare bankrupt Russian-German Trade Bank (RGT-Bank, Moscow), a court official told the Russian Agency for Legal and Court Information (RALCI), RIA Novosti wires. The court initiated bankruptcy proceedings and appointed the Deposit Insurance Agency (DIA) the bank’s receiver.
The Bank of Russia revoked RGT-Bank’s banking license starting December 21, 2010. According to the Bank of Russia, the measures stipulated by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” were applied to the bank many times during a year. Specifically, RGT-Bank did not fulfill CBR’s orders regarding the reliable assessment of its assets and the accumulation of adequate reserves against possible losses, and also provided substantially misstated financial reports to the regulator. The lending institution’s management and shareholders, according to CBR, took no efficient measures to solve the problem.
