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License-stripped My Bank to begin payments to depositors no later than February 14

January 31, 2014, 12:48 UTC+3 MOSCOW

The aggregate sum on all accounts of a depositor in the bank will be paid to account holders as insurance benefits in an amount not exceeding $19,800

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© ITAR-TASS/Gennady Khamelyanin

MOSCOW, January 31. /ITAR-TASS/. License-stripped Moscow-based crediting organization Moy Bank will begin payments to its depositors no later than on February 14, 2014, the deposit insurance agency said in a statement on Friday.

The aggregate sum on all accounts of a depositor in the bank will be paid to account holders as insurance benefits, including accounts opened for business activity, in an amount not exceeding 700,000 rubles ($19,800) on aggregate, the agency said in a statement. The sum not compensated by insurance policy will be repaid in the course of the bank’s shutdown procedure.

According to accounting balance sheet as of January 1, 2013, deposits of people in My Bank amounted to around 12 billion rubles ($340.4 million), bank’s losses — 436.5 million rubles ($12.3 million). Media named famous Russian film director Nikita Mikhalkov and Russian presidential aide Sergei Glazyev among major depositors.

The board of the deposit insurance agency decided that this agent bank would be chosen on a competitive basis no later than on February 6, 2014.

January 24, the Central Bank of Russia (CBR) has revoked the license from crediting organization My Bank. Information on the issue was published on the official website of the financial watchdog.

“The CBR informs about the decision to revoke the license for banking transactions from crediting organization My Bank from January 31, 2014,” CBR said in a statement. “The decision to take an extreme restrictive measure to revoke a bank’s license was taken over non-fulfillment of federal laws, CBR regulatory acts, exposure of false accounting data and inability to satisfy creditors’ requirements on monetary liabilities by the crediting organization,” the statement runs.

CBR’s statement noted that My Bank had carried out a highly risky crediting policy, allocating loans that “do not generate monetary flow.” Due to loss of liquidity the bank top management and owners did not take required measures, particularly did not provide conditions to involve the agency of deposit insurance in financial sanation.

Provisional administration was named in My Bank.

The crediting organization participates in deposit insurance system. Revocation of the licence is an insurance event according to legislation.

My Bank is ranked at the 181st position in Russian banking system as of January 1, 2014, in terms of assets.

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