On October 10, 2008 the Bank of Russia revoked a banking license from Moscow-based commercial bank Eurasia-Center that suffered serious liquidity problems in recent weeks.
The Central Bank of Russia said in an official statement that due to the loss of liquidity Eurasia-Center was unable to timely make settlements under client accounts and failed to comply with mandatory reserves requirements. In addition, the bank submitted unreliable reports to the central bank that concealed grounds for actions to prevent bankruptcy. The bank’s executives and shareholders failed to take measures required to restore the financial standing and failed to eliminate grounds obliging the Bank of Russia to revoke the lending institution’s banking license.
The temporary administration was appointed at the bank and the authority of its governing bodies was suspended.
Eurasia-Center is a member of the national deposit insurance system. The cancellation of the lender’s banking license is an accident insured, as provided for by the Federal Law “On Insuring Private Deposits Held with Banks in the Russian Federation”, the PR department of the Central Bank of Russia reported.
