The negative difference between assets and liabilities at European Trust Bank, the license of which the Bank of Russia cancelled on Tuesday, equals at least Rub 1.3 bln, the regulator’s press service told Banki.ru.
The Bank of Russia stripped the bank of its license because of its numerous violations of Russian laws and CBR’s statutory acts, and also owing to the discovery of suspicious cash and non-cash transactions for Rub 7 bln.
The Bank of Russia specified that some of the bank’s assets were invested in close-ended mutual funds. As the regulator’s representative said, the value of real estate facilities and land, which make up these close-ended mutual funds, turned out to be substantially overstated.
According to the bank’s financial statement as of January 1, the lending institution’s assets were equal to Rub 17.6 bln. Of this amount just Rub 151.6 mln fell to highly liquid assets at year-start 2014.
The regulator also noted that the bank pursued a high-risk lending policy and piled up no adequate allowances against possible loan losses. Because of the loss of liquidity the bank was unable to timely fulfill its obligations to creditors and deposit holders.
