The Bank of Russia decided to revoke the banking license held by Eurosib Bank (registration #594, Saint Petersburg) starting July 7, 2014. A relevant order (OD-1659) was posted on the regulator’s website on Monday.
Based on CBR’s data, the bank pursued a high-risk lending policy, formed no adequate risk-weighted reserves against loan losses. In addition, Eurosib Bank failed to comply with the supervisory board’s request as to give reliable presentation of its financial standing in accounting records and financial statements. For this reason the bank’s financial statements, which were submitted to the Bank of Russia, were highly unreliable.
Furthermore, the bank failed to observe requirements of laws preventing legalization (laundering) of criminal income and the financing of terrorist acts, failing to timely provide authorities with data on operations that are subject to mandatory supervision and proper identification of clients. The lending institution’s executives and owners took no required measures to normalize its activities.
In accordance with the CBR’s order, a temporary administration was appointed for Eurosib Bank until a bankruptcy receiver or a liquidator is appointed. In accordance with federal laws the powers and authority of the lending institution’s executive bodies were suspended.
Eurosib Bank is a member of the national deposit insurance system.
