The Central Bank of the Russian Federation has revoked the banking license held by Sotsgorbank effective April 18, the PR department of the Bank of Russia reported on Monday.
“The Bank of Russia decided to apply the last resort — to cancel a banking license — due to the bank’s failure to comply with the federal laws regulating banking activities and CBR statutory acts, identified instances when materially misstated 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," the regulator emphasized in a statement.
In accordance with CBR’s Order No. OD-283 dated April 15, 2011, a temporary administration commenced work at the bank until a bankruptcy receiver or a liquidator is appointed. In accordance with the federal laws the powers and authority of the lending institution’s executive bodies were suspended.
Sotsgorbank 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 at Banks of the Russian Federation”.
Sotsgorbank is a small private bank, with operations centered on the Moscow region. Its key areas of business are lending of corporate and private customers, and private deposits. Its major shareholders are Sergey Abakumov (19.867%), Sergey Zlobin, Vladimir Panin, Vyacheslav Shenaev (17.962% each) and Alexander Polyakov (16.057%). Leo Overseas Ltd. (managed by Firebird, USA) holds a 10% interest.
Based on Banki.ru data, as of March 1, 2011 the lender’s net assets stood at Rub 13.14 bln (182nd in Russia), equity (calculated in line with CBR requirements) totaled Rub 1.60 bln, the credit portfolio amounted to Rub 9.27 bln and obligations to households equaled Rub 7.45 bln.
