The PR department of the Central Bank of Russia reported that through its order the Bank of Russia cancelled banking licenses from Electronika, Capital Credit and Borovitskiye Vorota. Temporary administrations were appointed for these lending institutions.
Electronika’s license was revoked as “its capital adequacy dropped below 2%, due to a reduction in the bank’s equity capital below the minimal threshold set by the Bank of Russia on the date of the lending institution’s state registration and the lender’s inability to meet monetary claims of its creditors”.
CBR pointed out that owing to the full loss of capital and liquidity the bank failed to make timely settlements on client accounts. In order to protect the bank’s depositors and creditors state-run corporation Deposit Insurance Agency (DIA) was ordered to perform the duties of a temporary administration. The conducted analysis of Electronika’s financial standing and also “the elimination of unreliable data in financial statements” showed it is not possible to restore the lender’s creditworthiness and investors take no interest in rehabilitating the bank. Electronika’s obligations to households under bank deposit and bank account agreements were fully assigned to National Reserve Bank.
Capital Credit’s license was revoked due to the bank’s failure to comply with federal laws that regulate banking activities, statutory acts of the Bank of Russia, identified instances when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, as its capital adequacy ratio dropped below 2%, the bank’s inability to meet monetary claims of creditors and also the numerous application during the year of the measures envisaged by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”. “The lender pursued a risky credit policy that resulted in the loss of capital and liquidity and also the inability to fulfill obligations to its clients in a timely manner. At the same time, the bank submitted substantially unreliable reports to the Bank of Russia” — CBR said in a press release.
The license held by Borovitskiye Vorota was cancelled because of “the lending institution’s failure to comply with laws that regulate banking activities and also CBR statutory acts, given the numerous application of the measures provided for by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”. The lending institution pursued a high-risk credit policy and did not form adequate reserves for possible losses. In addition, the bank did not fulfill requirements set forth in CBR orders” — the central bank reported.
