Uralliga has been busy, agreeing upon its rehabilitation program and a new shareholder with the Chief Directorate of the Central Bank of Russia in the Chelyabinsk region, the lending institution’s administration said in a press release posted on the website.
On Friday the bank announced restrictions on some operations given CBR’s instruction. In particular, at issue was the prohibition to open bank accounts for businesses that are not the lending institution’s founders or participants, the ban to make settlements through the Bank of Russia’s payment system by swapping digital documents and via correspondent accounts opened at other lending institutions and to limit money transfers to the budgets at all levels on the instructions of businesses.
The bank said on its website that on October 21, 2013 the Bank of Russia demanded to form 100% provisions against possible losses under the loans issued to paper mill Nickmas, which dampened the capital adequacy ratio. In addition, the lending institution’s executives held negotiations with potential shareholders. On November 13, 2013 the regulator demanded for compile additional reserves with regard to the borrowers of a group of economically related companies Nickmas, which turned the bank’s capital into negative.
The bank’s management sent a letter to the Bank of Russia about measures taken to restore capital adequacy, but the regulator did not accept the program provided and demanded to suspend a number of operations, which resulted in panic of the bank’s deposit holders.
