On Revocation of Banking Licence and Appointment of Provisional Administration
By its Order No. OD-143 of February 11, 2014, the Bank of Russia has revoked the banking licence of credit institution Commercial Bank European Trust Bank (closed joint-stock company) — CB EUROTRUST CJSC (Moscow) — effective from February 11, 2014.
Under Article 20 of the Federal Law “On Banks and Banking Activities”, the Bank of Russia has fulfilled its obligation to revoke the banking licence of CB EUROTRUST CJSC in connection with the failure of the credit institution to comply with federal banking laws and Bank of Russia regulations, as well as the identification of substantial inaccuracies in reporting data and inability to meet creditor claims to monetary obligations, and given the repeated application of measures stipulated by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” within one year.
Due to a liquidity loss, CB EUROTRUST CJSC did not timely meet liabilities to creditors and depositors. The bank carried out a high-risk credit policy and did not form adequate provisions for possible losses on loans and other assets. In addition, the credit institution delivered substantially inaccurate reports to the Bank of Russia, which concealed its failure to meet the claims of creditors and depositors, as well as a capital loss. At the same time, the bank failed to comply with the requirements of the supervisory authority. The credit institution was involved in doubtful cash and non-cash transactions, the total amount of which exceeded 7 billion roubles in the first nine months of 2013.
The managers and owners of CB EUROTRUST CJSC failed to take effective measures to normalize its activities.
In accordance with its Order No. OD-144 of February 11, 2014, the Bank of Russia has appointed a provisional administration to CB EUROTRUST CJSC for the period until the appointment of a receiver pursuant to the Federal Law “On Insolvency (Bankruptcy) of Credit Institutions” or a liquidator under Article 23.1 of the Federal Law “On Banks and Banking Activities.” In line with the federal laws, the powers of executive bodies of the credit institution have been suspended.
CB EUROTRUST CJSC is a member of the deposit insurance system. The revocation of the banking licence represents an insured event as stipulated by Federal Law No.
As of January 1, 2014, CB EUROTRUST CJSC was ranked 201st by assets in the Russian banking system.
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11.02.2014 00.00.00