Central European Bank

Bank of Russia the Central European Bank (Chita) deprived on August 24, 2018 of the license. According to data of the reporting, on  the value of assets for August 1, 2018 the credit institution took the 322nd place in  a banking system of the Russian Federation,  was not socially important and   had no significant effect on  cumulative indicators of the banking sector of Zabaykalsky Krai.

Owing to carrying out extremely risky credit policy on  balance of bank the considerable volume of low-quality assets was formed. The Bank of Russia within a year four times  applied  to  LLC CB Central European Bank of a measure of supervising influence.

"Heads and  owners of bank  did not take effective measures on  normalization of its activity.  In the circumstances the Bank of Russia made the decision on  a response at   LLC CB Central European Bank  of a license for banking operations", says the regulator.

2020: A seizure of property of the ex-management of the Central European Bank for 748 million rubles

In the middle of July, 2020 the Arbitration court of Zabaykalsky Krai arrested property of the ex-management of the Central European bank deprived of the license for 748 million rubles, having satisfied the claim of Deposit Insurance Agency (DIA).

As declared in the Central Bank of the Russian Federation, by August 1, 2018 Centralno-Evropeyskogo bank issued guarantees in the amount of more than 6.5 billion rubles that exceeded the size of own means of credit institution by 9 times. Formalistic approach to assessment of activity of principals led to significant growth in losses which were connected with obligation fulfillment on the provided guarantees, including judicially.

The court arrested property of the ex-management of the Central European Bank

Besides, as approves the regulator, owing to carrying out extremely risky credit policy on balance of bank the considerable volume of low-quality assets was formed. Proper assessment of the credit risk accepted by bank revealed significant decrease in the size of its own means (capital) and existence in its activity of the bases for implementation of measures for warning of insolvency (bankruptcy) that created real threat to the interests of his creditors and investors.

According to the resolution of Arbitration court of Zabaykalsky Krai, the actual circumstances demonstrate existence of potential threat of possible non-execution of the judicial act which was taken out based on consideration of the application of the receiver about collecting from the former top managers of losses.

Earlier edge arbitration granted the application of the Bank of Russia for recognition of the Central European bank insolvent.

The Central Bank of the Russian Federation repeatedly applied to the Central European bank of a measure of supervising influence. The regulator noted that heads and owners of bank did not take effective measures on normalization of its activity.^[1]

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