The Bank of Russia said on November 12, 2008 it is to cancel licenses of two commercial banks — Econatsbank (Moscow, registration #2765) and Mira-Bank (Moscow, registration #3361).
According to the Russian Central Bank’s PR department, the banking license of Joint Stock National Bank for Environment Protection (Econatsbank) was cancelled because of the bank’s failure to comply with federal laws that regulate banking activities, statutory acts of the Bank of Russia, identified instances when financial statements were misstated, the inability to meet monetary demands of creditors and fulfill the duty of making mandatory payments.
Due to the loss of liquidity Econatsbank failed to make timely payments under client accounts. At the same time, the bank submitted unreliable reports to the Bank of Russia. Also, the lending institution’s executives and shareholders failed to restore the bank’s financial standing or eliminate reasons obliging the Bank of Russia to revoke the lender’s banking license.
The Bank of Russia took a decision to apply the last measure of influence (revocation of a bank’s banking license) to Mira-Bank due to the latter’s failure to comply with federal laws that regulate banking activities, statutory acts of the Bank of Russia, the inability to meet monetary demands of creditors and fulfill the duty of making mandatory payments.
Due to the loss of liquidity Mira-Bank failed to make timely payments under client accounts and also failed to meet mandatory reserve requirements. Also, the lending institution’s executives and shareholders failed to restore the bank’s financial standing or eliminate reasons obliging the Bank of Russia to revoke the lender’s banking license.
Both banks are members of the national deposit insurance system. The cancellation of a banking license is an accident insured, as provided for by the Federal Law “On Insuring Private Deposits Held with Banks in the Russian Federation”.
