Since September 30, 2014 the Bank of Russia has revoked licenses held by Soyuzprombank (Registration No. 2965), Esidbank (Registration No. 1991) and Bank Prioritet (Registration No. 3135), the regulator’s press service reported on Tuesday.
The regulator noted that the decision was taken as the lending institutions failed to fulfill federal laws regulating banking activities and also CBR’s statutory acts. Furthermore, executives and owners of the banks took no efficient measures to normalize their operation and restore financial standing.
In particular, Esidbank pursued a high-risk lending policy by investing the money in poor quality assets. In the upshot, while fulfilling demands to compile provisions adequate to the accepted risks the lending institution fully lost its equity. Due to the loss of liquidity the lender failed to timely fulfill its obligations to creditors or deposit holders. The regulator also pointed to the substantial misstatement of the lender’s financial reports and the failure to meet legislative requirements in the area of counteracting legalization of criminal income. In 2013 Esidbank got involved in suspicious operations for a total of over Rub 2 bln, the Bank of Russia specifies in a press release.
Bank Prioritet, as the regulator’s data show, failed to form provisions adequate to the accepted risks and due to the loss of liquidity it was unable to timely fulfill its obligations to creditors.
Soyuzprombank conducted a high-risk lending policy and piled up no loan loss provisions adequate to the accepted risks. In addition, the lending institution’s internal control regulations aimed at counteracting money laundering did not meet CBR’s requirements. Moreover, the lending institution was involved in suspicious operations related to the transfer of funds abroad.
As previously reported, since February 25, 2014 the Bank of Russia has recognized Esidbank’s license to draw retail deposits in rubles and foreign currencies as invalid.
Since September 8, 2014 Samara-based Bank Prioritet has temporarily suspended operation, the financial institution tells Banki.ru. Since September 3, 2014 Denis Derbilov, former senior VP and first deputy management board chairman at Samara-headquartered Bank Solidarnost, has been appointed as the lending institution’s new management board chairman. Denis Mashkov, a former management board chairman at Bank Prioritet and its shareholder, sent out a letter to the Prosecutor’s Office of the Samara region, claiming the bank is facing a hostile takeover. Business daily Kommersant wrote that the lending institution’s shareholders are in talks with a financial group from Moscow over the bank’s rehabilitation.
Esidbank and Bank Prioritet are members of the deposit insurance system. Payments to the bank’s clients would begin no later than October 14, the State Depositary Insurance Agency (DIA) reported.
