By its November 20 order the Bank of Russia cancelled the banking license from Sibcontact, the PR department of the Central Bank of Russia reported. This decision was adopted due to the lending institution’s failure to comply with federal laws that regulate banking activities and the Bank of Russia’s statutory acts, the inability to meet monetary claims of creditors and fulfill the duty of making mandatory payments, and also taking into account the application on numerous occasions within a year of the measures envisaged by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”.
Temporary administration was appointed at Sibcontact until the appointment in accordance with the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions” of the bankruptcy manager or a liquidator pursuant to Article 23.1 of the Federal Law “On Banks and Banking Activities”. The authority of the lending institution’s executive bodies was suspended in accordance with the federal laws.
Commercial bank Sibcontact is a member of the national deposit insurance system. The revocation of a banking license is an accident insured as provided for by the Federal Law “On Insuring Private Deposits Held with Banks of the Russian Federation”.
By its November 20 order the Bank of Russia cancelled Bank Sochi’s banking license, the PR department of the Central Bank of Russia reported. Due to the loss of liquidity the bank failed to timely make settlements under client accounts. In the process, the lender provided CBR with substantially unreliable financial statements, concealing the lending institution’s unsatisfactory financial standing. The bank’s executives and shareholders were unable to restore its financial standing or eliminate reasons enabling the Bank of Russia to cancel the lender’s banking license.
In line with the November 19 order the temporary administration was appointed at Bank Sochi. The bank is also a member of the national deposit insurance system.
