The Bank of Russia has revoked as of August 5, 2016 a banking license held by Vologda-based Promenergobank.
As the Bank of Russia's press service noted, this decision was adopted as the bank failed to fulfill federal banking laws and also the regulator's statutory acts, and measures were taken as provided for in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)". As the Bank of Russia thinks, there was a real threat to the interests of Promenergobank's creditors and deposit holders.
The regulator pointed out that the financial institution pursued a high-risk credit policy by investing funds in weak quality assets. "As a result of the proper assessment of the accepted risks at the request of the supervisory body and reliable reflection of the bank's asset value, the bank saw grounds to take measures to prevent its insolvency (bankruptcy). Furthermore, due to the loss of liquidity the lending institution was sometimes unable to timely meet obligations to creditors. The bank's top managers and owners took no measures required to bring its operations back to normal," the regulator said.
"Under the circumstances, the Bank of Russia decided to remove Promenergobank from the banking services market," the regulator said in conclusion.
A temporary administration team was appointed for the bank until a bankruptcy manager or a receiver is appointed. The powers and authority of the bank's executive bodies were suspended.
Promenergobank is a member of the national deposit insurance system, and the revocation of a license is an insured event that calls for compensation payable to deposit holders, including individual entrepreneurs, in the amount of 100% of cash balances held, but no more than Rub 1.4 mln in the aggregate per deposit holder.
