Central Bank of Russia revokes license Geobank

AK&M 05 April 2021 23:29

The Bank of Russia revoked the banking license of Commercial Bank Geobank (Moscow). The credit institution ranked 354th in the Russian banking system in terms of asset size, the regulator informed.

For its core activities, Geobank used premises leased under repeatedly extended agreements, which were qualified as short-term and were recorded on the balance sheet with the violation of the requirements of Bank of Russia regulations, the regulator emphasizes.

Moreover, the credit institution did not recognize expenses incurred by the said operations in its accounting in a timely manner. Compliance with the supervisor's requirements to recognize the leasing agreements as long-term agreements and to properly record associated expenses revealed a full loss of equity by Geobank.

The powers of the credit institution's executive bodies are now suspended. The Bank of Russia appointed a provisional administration4 to Geobank for the period until the appointment of a receiver or a liquidator. Geobank is a participant of Russia's deposit insurance system.