CENTRAL BANK OF RUSSIA REVOKED THE LICENSE OF GEOBANK

The Central Bank of Russia announced the revocation of the banking license from Geobank LLC. The decision was made due to numerous violations committed by the credit institution.

The representatives of the Central Bank stated that Geobank completely lost its funds. In addition, the institution violated federal laws and regulations of the Central Bank. Over the past year, the regulator has repeatedly tried to apply measures to Geobank, and even imposed a ban on attracting funds from depositors.

Geobank kept accounting records of transaction costs in bad faith.

It is known that the bank was located in premises rented under multiple prolonged contracts recognized as short-term ones. The Central Bank got interested in the situation and demanded to recognize the contracts as long-term ones in order to correctly reflect the costs, but it turned out that Geobank had almost no funds.

Now the temporary administration of the Central Bank will work in the credit institution, then it will be replaced by a liquidator or a bankruptcy manager. Geobank was a member of the deposit insurance system - depositors will receive their money, but no more than 1.4 million rubles for each. The organization took 354th place in the banking rating of the Russian Federation.