The Central Bank of the Russian Federation revoked the license of OJSC CB Assotsiatsiya Bank, ranked 170th by assets in the Russian banking system, and put the lender into provisional administration until the appointment of a receiver or a liquidator.
The regulator said it discovered the absence of 3.8 billion Russian rubles worth of funds which were reflected in Assotsiatsiya's financial reports and were supposed to be held in the lender's accounts with a foreign bank. The missing sum exceeded Assotsiatsiya's equity capital more than twofold. The regulator ordered the lender to set aside additional provisions for the missing assets, which resulted in the loss of capital by the bank.
The funds were supposed to be held at VTB Bank (Europe) SE but disappeared after a series of fraudulent transactions carried out by Assotsiatsiya's treasury officer, who has already been interrogated by Russian law enforcement, Kommersant reported July 29.
Assotsiatsiya is a member of Russia's deposit insurance system, and its customers will receive compensation of up to 1.4 million rubles each for deposits held at the lender, the central bank noted. The lender is also accumulating financial resources to settle its obligations with clients whose deposits exceeded 1.4 million rubles, Kommersant said.
Assotsiatsiya's management board is headed by Mikhail Gaponov, who also serves as vice chairman of the board at the Association of Russian Banks, the newspaper noted.
As of July 29, US$1 was equivalent to 63.50 Russian rubles.