On the revocation of banking licence and appointment of provisional administration
By Order No. OD-224, dated 5 March 2014, the Bank of Russia revoked the banking licence of the Moscow-based Commercial Bank Monolit (Limited Liability Company) from 5 March 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of Monolit Bank’s failure to comply with federal banking laws and Bank of Russia regulations, as well as its inability to satisfy creditors’ claims on its pecuniary liabilities and taking into account the repeated application over the past year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
Due to the loss of liquidity CB Monolit failed to perform its obligations to creditors and depositors on time. At the same time, the credit institution hid the facts of non-execution of creditors’ and depositors’ claims submitting unreliable financial statements to the Bank of Russia. The bank implemented a high-risk lending policy and failed to make provisions on possible losses on loans and other assets commensurate with the risks assumed. The credit institution was involved in dubious cash and cashless transactions, the amount of which totalled 9 billion roubles in 2013. The management and owners of CB Monolit failed to take effective measures to bring the situation back to normal and recover its financial standing.
In pursuance of Bank of Russia Order No. OD-225, dated 5 March 2014, a provisional administration has been appointed to CB Monolit for a term until the appointment of a receiver in accordance with the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ or a liquidator in accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In compliance with federal laws the powers of the credit institution’s executive bodies have been suspended.
CB Monolit is a participant in the deposit insurance system. The revocation of the banking licence is recognised as an insured event stipulated by Federal Law No.
As of 1 February 2014, CB Monolit ranked 228th in the Russian banking system in terms of assets.
The reference to the Press Service is mandatory if you intend to use this material.
05.03.2014 00.00.00