The Bank of Russia has cancelled as of January 29 a banking license held by Your Personal Bank (Registration No. 1222, the Irkutsk region, the town of Ust-Kut), the Bank of Russia's press service reported.
The bank pursued a high-risk lending policy by investing the money in poor quality assets, the regulator specified. Due to the unsatisfactory quality of the assets which did not generate a sufficient cash flow the bank failed to timely meet its obligations to creditors and deposit holders. Furthermore, the bank's executives and owners took no efficient measures to bring its operation to normal or restore its financial standing, the Bank of Russia reported.
Your Personal Bank is a member of the national deposit insurance system.
The bank's problems were unveiled in December. People stood in lines to take back their money from deposit accounts at the bank's head office located in Irkutsk. In Chelyabinsk the bank requested deposit holders to file applications to receive their funds from accounts regardless of amounts two days in advance. A cash withdrawal application is "normal practice", "this is not any restriction", Alexei Popov, head of banking business development at Your Personal Bank, explained to Banki.ru. According to the bank's employee, this decision was caused by a glitch in the bank's database in early January.
Energosbyt Rostovenergo accused the bank's Rostov branch of holding household funds paid for electric power supplied, posting a press release on its website. Complaints about the bank that is unable to return money from deposits accounts were also written in the People's Rating on Banki.ru. The lender's clients said in mid-January that they were still unable to take their money from accounts, although they wished to do so before New Year holidays.
