The Bank of Russia has approved plans for the Deposit Insurance Agency (DIA) to take measures in prevent Express-Volga, VUZ-Bank, Bank Poidem! and Gazenergobank from going bankrupt, the Bank of Russia's press service reported.
Notably, all these banks are part of financial group Life. Earlier on Wednesday the Russian regulator revoked a banking license held by the group's parent bank, Probusinessbank, and approved a program for the DIA to take part in the settlement of the bank's obligations.
As the Bank of Russia noted, plans for the DIA to take part in forestalling the bankruptcy of four above banks, and also approved amendments to the plan for the agency to participate in the measures to prevent Samara-based Bank Solidarnost from going bankrupt (at the beginning of 2014 Probusinessbank was authorized to rescue the bank and was later folded into financial group Life), call for imposing, as of August 12, on the state-run corporation functions of the temporary administer to manage the banks.
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 regulator emphasized.
The regulator specified that the plans "provide for funds to be earmarked by the agency using the Bank of Russia's loan to maintain liquidity of the banks in the amount sufficient to ensure their uninterruptible operation and make settlements with creditors in a timely manner. Rossiyskiy Capital, which will conduct operations to maintain the banks' liquidity using funds provided by the agency, will engage in providing liquidity to the banks.
"The priority objective of the temporary administration teams is to analyze the financial standing of the banks. After the agency completes the assessment of the banks' financial standing, including the real value of assets and liabilities, raises the charter capitals of banks to the real amount (to Rub 1.00 if they are negative), the agency will hold a tender to select investors to take measures to prevent the banks from going bankrupt, including cash injections into them," the Bank of Russia said in a press release.
