The Bank of Russia adopted a decision to terminate starting July 4, 2008 the activities carried out by the provisional administration at Medinvestbank that was appointed by the May 12, 2008 order owing to the revocation of the lender’s banking license, the PR department of the Central Bank of Russia reported.
The provisional administration is to stop activities as the Moscow Arbitration Court (MAC) issued a ruling on June 26, 2008 on Medinvestbank’s forced liquidation and the appointment of a receiver in accordance with Article 18.4 of the Federal Law «On Insolvency (Bankruptcy) of Lending Institutions».
For the record, Medinvestbank was stripped of the banking license on May 12, 2008 due to the breach of anti-money laundering laws. The bank pursued a risky lending policy and performed inadequate formation of reserves for possible losses under loans, which resulted in the submission of substantially unreliable data to the Bank of Russia, which concealed grounds for the monetary authority to take measures to prevent the lending institution’s bankruptcy.
