The Bank of Russia took a decision to revoke Sakhalin-West’s banking license starting August 7. As the PR department of the Central Bank of Russia reported, the license was cancelled due to the lending institution’s failure to comply with federal laws that regulate banking activities and the Bank of Russia’s statutory acts, and also due to the identification of instances of providing materially unreliable reports, the failure to meet monetary obligations to its creditors and fulfill the obligation to make mandatory payments.
In line with the monetary authority’s order dated August 6, 2008, a temporary administration was appointed at the bank to conduct operations until a receiver is appointed in accordance with the Federal Law «On Insolvency (Bankruptcy) of Lending Institutions» or a liquidator is elected pursuant to Article 23.1 of the Federal Law «On Banks and Banking Activities». The powers and authority of the bank’s executive bodies were suspended in line with federal laws.
Sakhalin-West is a member of the national deposit insurance system. The revocation of the banking license is an accident insured that is provided for by the Federal Law #177-FZ «On Insuring Private Deposits Held With Banks of the Russian Federation».
