The Central Bank of Russia has revoked as of April 5, 2016 a banking license held by El Bank (Registration No. 1025, based in Togliatti (Samara region)), the regulator's press service reported.
The Bank of Russia decided to take the last-resort measure as the lending institution failed to fulfill federal banking laws and also CBR's statutory acts, to meet monetary claims of creditors and taking into account the multiple application during the year of the measures provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
"El Bank turned out to be unable to timely meet claims of deposit holders, while the period, during which the bank failed to meet its obligations to pay back their funds, exceeded 14 days," the Bank of Russia emphasized.
The bank's management and owners took no efficient measures to normalize its activities.
Banki.ru previously wrote citing a source familiar with the situation that the Bank of Russia cut El Bank off the Banking Electronic Speedy Payment (BESP) system. Furthermore, the lending institution started to keep a list of those willing to take back their deposits.
El Bank is a member of the national deposit insurance system.
