CB pulls Tuvacredit and Uralinkombank licenses

CB pulls Tuvacredit and Uralinkombank licenses
Urals Innovation Commercial Bank (Uralinkombank) and Tuvacredit have had their banking licenses lifted by Russia’s Central Bank (CBR) on Tuesday, the regulator said in a statement.

­Uralinkombank lost its license in line with the Federal Law on Insolvency (Bankruptcy) of Lending Institutions “due to the insolvency and depleted liquidity which prevented the bank from making timely settlements on client accounts,” the CBR said.

According to the Central Bank statement, the bank's managers and shareholders had been unable to restore its financial health, and had provided the CBR with very “inaccurate statements that did not fully reflect the scale of its failure to meet obligations to clients.”

Tuvacredit, the CBR said, had failed to report to authorities on transactions subject to mandatory oversight, and to meet the Central Bank's requirements for provisions for loan losses and other assets.
The credit organization had been accused of significant private capital outflow in deals of a “convoluted and unusual nature that have no clear economic sense”, the Central Bank said.

“Tuvacredit clients registered in Moscow transferred about 6 billion rubles to their own accounts and the accounts of other Russian residents at banks in Latvia and Armenia for goods located within the country.”
The powers of the management bodies of both organizations have been suspended in accordance with federal law.