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Russia’s Central Bank revokes license from Moscow-based bank

March 05, 2014, 10:25 UTC+3 MOSCOW
The financial regulator noted that due to loss of liquidity, commercial bank Monolit did not fulfil liabilities to creditors and depositors timely
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© ITAR-TASS/Zurab Dzhavakhadze [Archive]

MOSCOW, March 05. /ITAR-TASS/. The Central Bank of Russia (CBR) has issued a decree on March 5, 2014 revoking a license for banking transactions from Moscow-based commercial bank Monolit which is a member of deposit insurance system, the financial regulator said in a statement.

The CBR decision to impose extreme restriction revoking a license was taken due to the fact that the crediting organization did not fulfil federal laws regulating banking activity and CBR regulatory acts and incapability to meet demands of creditors on monetary liabilities.

The financial regulator noted that due to loss of liquidity, commercial bank Monolit did not fulfil liabilities to creditors and depositors timely. Meanwhile, the crediting organization concealed cases of non-fulfilment of demands from creditors and depositors producing false accounting reports in the CBR. The bank pursued a highly risky crediting policy and did not form reserves adequate to risks for possible losses in loan indebtedness and other assets.

Meanwhile, the crediting organization was involved in suspicious cash and non-cash transactions that amounted to 9 billion rubles (around $247.7 million) in 2013. Chief executives and owners of bank Monolit did not take effective measures to improve the bank’s activity and restore its financial position.

Provisional administration was appointed in the bank until a bankruptcy manager or a receiver is named. Powers of executive authorities of the crediting organization are suspended according to federal laws.

As for the size of assets, bank Monolit was ranked 228th in Russian banking system as of February 1, 2014.

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