The Bank of Russia has revoked effective September 24 a banking license held by Barnaul-based Zernobank, the regulator's press service reported.
As the regulator specified, the decision to cancel the bank's license was taken as the lending institution failed to fulfill federal laws regulating banking activities and the Bank of Russia's statutory acts, and measures provided for in the Federal Law "On the Central Bank of Russia (Bank of Russia)" were applied during the year, and also taking into account a real threat to the interests of the bank's creditors and deposit holders.
The regulator stated that due to the unsatisfactory quality of assets that generated no sufficient cash flow Zernobank, starting this September, was systematically unable to fulfill its obligations to creditors. The lending institution's executives or owners took no efficient actions to bring its activities to normal or to restore its financial standing. "Due to the rising threat to the interest of creditors and deposit holders, and also for the purpose of preserving bankruptcy assets the Bank of Russia decided to revoke the lending institution's license," the regulator said in a press release.
As Banki.ru previously reported, Zernobank stopped serving its clients earlier in September. The local media wired that the bank has been in a dispute with one of its clients, as a result of which Rub 179 bln was seized on the lending institution's accounts. A court hearing was scheduled for September 24. Alexander Karlin, the Governor of the Altai region, applied to the Bank of Russia in mid-September with a request to launch procedures to revitalize Zernobank, offering to rehabilitate the bank with assistance of regional bank Sibsotsbank.
The regulator reported on Thursday that a temporary administration team commenced operations at the bank until a bankruptcy manager or a liquidator is appointed. The powers and authority of the bank's executive bodies were suspended.
Zernobank is a member of the national deposit insurance system, and the revocation of a license is an accident insured, the Bank of Russia noted. The Deposit Insurance Agency (DIA) specified on its website that an agent to pay compensation to Zernobank deposit holders would be selected no later than September 30, and payments would begin no later than October 8.
