On August 27, 2008 the Bank of Russia revoked a banking license from Premier Bank. The Central Bank of Russia has taken such measures due to the bank’s non-fulfillment of federal laws that govern banking activities and statutory acts of the Bank of Russia, instances of material unreliability of reports presented, the bank’s inability to meet creditors’ claims under monetary obligations and also taking into account the numerous application throughout the year of the measures envisaged by the Federal Law «On the Central Bank of the Russian Federation (Bank of Russia)», the PR department of the Central Bank of Russia reported.
Premier Bank failed to comply with mandatory reserve volumes and violated accounting regulations. Furthermore, the lending institution provided the Bank of Russia with substantially unreliable reporting that concealed grounds for the measures to be taken to prevent insolvency (bankruptcy).
Owing to the loss of liquidity the lending institution was unable to carry out settlements under client accounts on time. The lender’s management and shareholders failed to restore the bank’s financial standing or eliminate grounds for the revocation of the banking license.
In accordance with an order issued by the Bank of Russia, a temporary administration was appointed at the bank until a bankruptcy manager or a liquidator is appointed. Powers and authority of the lender’s executive bodies were suspended in line with federal laws.
The lending institution is a member of the national deposit insurance system. The cancellation of a banking license is an insured accident provided for by the Federal Law «On Insuring Private Deposits with Banks of the Russian Federation».
