24 Sep 2009 10:56

CB revokes Pervomaisky Bank

MOSCOW. Sept 24 (Interfax) - The Central Bank of Russia has recalled the banking license of Izhevsk-based OOO Pervomaisky Commercial Bank, the CB's press service said.

The license was revoked owing to the bank's inability to meet federal laws regulating bank operations and the CB's normative acts. In addition, the bank was unable to satisfy the requirements of creditors on monetary debts and had repeatedly implemented measures specified in the law "On the Central Bank of the Russian Federation (Bank of Russia)" throughout the course of a year.

The CB said that since Pervomaisky Bank had depleted its liquidity, it was unable to implement full transactions for client accounts. In addition, the bank failed to form adequate reserves for possible loan losses and did not follow the obligatory norms and regulations for the formation of necessary reserves at the CB.

As a result, temporary administration has been instituted at Pervomaisky Bank, which will operate until the moment a liquidator or bankruptcy manager is appointed.

The authoritative functions of the bank's executive bodies have been suspended in accordance with Russian legislation.