The Bank of Russia decided to cancel a banking license held by Udmurtinveststroybank (Izhevsk, Registration No. 2447) starting November 15, 2011, the PR department of the Central Bank of the Russian Federation reported.
“The decision to apply measures of last resort — to cancel the banking license — was taken as Udmurtinveststroybank failed to comply with the federal laws that regulate banking activities and CBR’s statutory acts, the lender’s capital adequacy ratio dropped below 2%, own funds declined below the CBR-imposed statutory level as of the lending institution’s state registration, and also taking into account numerous applications during the year of the measures that are stipulated in the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”, the regulator pointed out in the press release.
In accordance with regulator’s order, a temporary administration commenced work at the bank until a bankruptcy receiver or a liquidator is appointed. The powers and authority of the bank’s executive bodies were suspended.
Udmurtinveststroybank is a member of the national deposit insurance system. The revocation of a banking license is an insured event as provided for in the Federal Law “On Insuring Private Deposits Held at Banks of the Russian Federation”.
