The Bank of Russia decided to cancel effective February 2, 2009 banking licenses held by two Moscow banks: Moscow Capital and Moscow Mortgage Bank.
As the PR department at the Central Bank of Russia reported, this decision was driven by the failure on the part of the lending institutions to comply with federal laws regulating banking activities and also CBR statutory acts, their insufficient capital adequacy ratios (below 2%), a decline in their equity capitals below the minimal threshold set by CBR on the date of their state registration and their inability to meet monetary claims of their creditors.
In accordance with the CBR order temporary administrations were introduced at Moscow Capital and Moscow Mortgage Bank until the appointment of bankruptcy managers or receivers. The authority of the banks’ executive bodies was suspended.
Due to the revocation of the licenses the Central Bank of Russia adopted a decision to terminate the fulfillment of the functions of the lenders’ temporary administrations, which are carried out by the Deposit Insurance Agency (DIA).
Moscow Capital and Moscow Mortgage Bank are members of the national deposit insurance system. Moscow Mortgage Bank’s obligations to households under bank deposit and bank account agreements were fully assigned to the Bank of Moscow since January 21, 2009, while funds held by Moscow Capital clients were assigned to Nomos-Bank since January 11, 2009.
