Effective July 14, 2011 CBR’s orders (No. OD-489 and No. OD-491 dated July 13, 2011) cancelled banking licenses held by Moscow-based lending institutions Rusich Center Bank and Ratibor-Bank, the Russian central bank’s PR department reported on Thursday.
“The Bank of Russia decided to apply the last resort — to cancel a banking license — due to the non-fulfillment by Rusich Center Bank and Ratibor-Bank of the federal laws regulating banking activities and CBR statutory acts, the failure to meet monetary claims of creditors, 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”, press releases say.
Both banks suffered liquidity problems that prevented them from fulfilling their obligations to customers in a timely manner, the PR Department of the Bank of Russia reports.
In line with the Bank of Russia’s Orders (No. OD-490 and No. OD-492 dated July 13, 2011), temporary administration teams were appointed until the appointment of a receiver in accordance with the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions” or a liquidator in line with Article 23.1 of the Federal Law “On Banks and Banking Activity”. In accordance with the federal laws the powers and authority of the lending institutions’ executive bodies were suspended.
Rusich Center Bank and Ratibor Bank are members 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”, the Bank of Russia notes.
