The Bank of Russia adopted a decision to revoke starting May 16, 2012 banking licenses held by Sembank (Moscow, Registration No. 2606) and Holding-Credit (Moscow, Registration No. 3030), this became known from the regulator’s insider information.
“The Bank of Russia decided to apply the last resort — to cancel a banking license — due to Holding-Credit’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’s PR department specified.
To recover from the bank debt obligations related to tax payments the Moscow Arbitration Court levied an attachment on the bank’s correspondent accounts. The bank failed to fulfill the requirements of the supervisory body’s orders related to the reliable assessment of the financial standing in reports in connection with the fiscal authority’s requests. The Bank of Russia was provided with materially misstated reports concealing the loss of capital and grounds for the revocation of the banking license. The Central Bank of Russia determined numerous instances when the lending institution failed to fulfill its obligations to deposit holders and other creditors. The bank’s members took no necessary measures to eliminate violations and restore its financial standing. Meanwhile, Holding-Credit executives kept aloof from the lending institution’s management.
Sembank was stripped of its license due to the non-fulfillment of federal laws regulating banking activities and CBR statutory acts, the inability to meet monetary claims of creditors and make mandatory payments, 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 (Bank of Russia)”. The lending institution pursued a high-risk credit policy and failed to form adequate reserves against possible loan losses, which led to the reasons for measures to be taken to prevent insolvency (bankruptcy). Due to the loss of liquidity Sembank failed to fulfill its obligations to creditors in a timely manner.
In accordance with CBR’s order, temporary administration was appointed at both banks until a receiver or a liquidator is appointed. In accordance with the federal laws the powers and authority of the lending institutions’ executive bodies were suspended.
