The Bank of Russia announces the beginning of a procedure for rehabilitating Rost Bank, Bank Kedr, Akkobank, SKA-Bank and TverUniversalBank as the interests of their creditors and deposit holders are in danger, the regulator’s press service reported.
These lending institutions will be rehabilitated with the participation of the State Depositary Insurance Agency (DIA). Since November 28, 2014 the agency will act as a temporary administration to run the banks.
The decision to take simultaneous measures to forestall bankruptcy of Rost Bank, Bank Kedr, Akkobank, SKA-Bank and TverUniversalBank was made due to the stable economic relations of these banks and the presence of other signs of common beneficial owners, the Bank of Russia noted in a press release. During the period of the temporary administration’s operation the powers and authority of said banks’ shareholders, which relate to the charter capital participation, and those of governing bodies were suspended. The decision was adopted in order to protect the interests of the banks’ creditors and deposit holders, the regulator specifies.
The assessment performed by DIA in October and November of the financial strength of the group’s banks, and also of documents received by the Bank of Russia in the course of supervision “shows that there are grounds provided for by the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions” to take measures to prevent bankruptcy, and also other signs of the threat to the interests of creditors and deposit holders," the Bank of Russia reports.
The agency, fulfilling the temporary administration’s functions, will work out in the near future a rehabilitation program for every bank. All the group’s banks continue to operate as usual, providing the whole range of banking services to clients and deposit holders, DIA said in a press release.
Meanwhile, Rost Bank management board chairman Artem Khenkin told Banki.ru that last Friday the Bank of Russia agreed upon the bank’s plan to improve its financial stability until July 2015. According to Khenkin, the plan suggests cash injection into the bank’s capital and repayment of the loans, against which Rub 8.5 bln was put aside in provisions. “As for the bank’s rehabilitation, this option has never been discussed with us, not a single official of the regulator told us anything of the kind," Khenkin said in an interview with Banki.ru.
