The Bank of Russia made a conclusion to strip Agrokhimbank (Bank for Development of the Agricultural and Chemical Industries) of its banking license as of December 30, 2008, the central bank’s PR department reported. “The license was cancelled because of the bank’s failure to comply with federal laws that regulate banking activities, statutory acts of the Bank of Russia, the inability to meet monetary claims of creditors and fulfill the duty of making mandatory payments” — CBR said in a statement.
Due to the loss of liquidity Agrokhimbank failed to make timely payments under client accounts. Also, the lending institution’s executives and shareholders failed to restore the bank’s financial standing or eliminate reasons obliging the Bank of Russia to revoke the lender’s banking license.
In line with the CBR order dated December 29 a temporary administration began operations at the bank until the appointment of a bankruptcy manager or a receiver in accordance with the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions”. The authority of the lending institution’s governing bodies was suspended.
Agrokhimbank is a member of the national deposit insurance system. The cancellation of a banking license is an accident insured, as provided for by the Federal Law “On Insuring Private Deposits Held with Banks in the Russian Federation”.
