The Bank of Russia decided to revoke starting October 3, 2011 a banking license held by Galabank (the Republic of Adygea, settlement Krasnogvardeiskoye, Registration No. 3090), the PR department of the Central Bank of the Russian Federation reported.
“The decision to take the measure of last resort was made by the Bank of Russia due to the lender’s non-fulfillment of federal laws regulating banking activities and CBR statutory acts, its inability to meet monetary claims of creditors and also taking into account the application on numerous occasions of the measures stipulated in the Federal Law “On the Central Bank of the Russian Federation”. In early September 2011 the lending institution ceased activities of its Moscow divisions, which caused the untimely fulfillment of the obligations to creditors. The lending institution’s management and owners did not take efficient measures to restore the bank’s activities when the bank was deprived of the right to attract private deposits," the Bank of Russia said in a press release.
In accordance with CBR’s order, 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.
Galabank is a member of the national deposit insurance system. The revocation of a banking license is an insured event as provided for in Federal Law No. 177-FZ “On Insuring Private Deposits Held with Banks of the Russian Federation”.
