As of March 26, 2014 the Bank of Russia has cancelled banking licenses held by Ufa-headquartered My Bank. Mortgage (Registration No. 2436) and Ekaterinburg-based Savings and Investment Bank (Sberinvestbank, Registration No. 1743), the regulator said in a press release on its website.
A decision to apply the measure of last resort to My Bank. Mortgage was taken as the lender failed to comply with federal laws regulating banking activities, and also the Bank of Russia’s statutory acts, the capital adequacy ratio fell below 2%, equity (capital) dropped below the level set by the Bank of Russia for the bank’s charter capital as of the date of its state registration and the bank’s inability to meet monetary claims of creditors, the regulator’s press service reported.
My Bank. Mortgage failed to make timely settlements on client accounts. in order to protect the interest of the bank’s deposit holders and creditors the Central Bank of Russia appointed the Deposit Insurance Agency (DIA) to act as the bank’s temporary administration on February 11, 2014. The bank’s assets and obligations to the deposit holders were assigned to Rossiyskiy Credit. This helped resume the service of My Bank. Mortgage clients within a short period of time, the regulator noted. The analysis of the bank’s financial standing conducted by the temporary administration showed that the bank lost its equity and there is no restoring its creditworthiness. Given the above reasons for the bank’s license to be revoked the Bank of Russia decided it would be inappropriate to take further action to rehabilitate the lender.
As of March 26, 2014 the temporary administration has been appointed at My Bank. Mortgage, DIA’s duties of the temporary administration have been terminated and the powers and authority of the lending institution’s executive bodies have been suspended.
Sberinvestbank, as the regulator’s press service reported, pursued a high-risk credit policy, formed no provisions adequate to the risks accepted for possible loan losses and did not comply with the requirements of anti-money laundering laws. Sberinvestbank was involved in suspicious cash operations. Operations of this kind totaled around Rub 4.6 bln in 2013. The bank’s executives and owners took no actions to get its activities back to normal. Sberinvestbank is a member of the national deposit insurance system.
