Lithuanian bank operating in Russia announces bankruptcy

On February 15, the Bank of Russia revoked Kapitalbank‘s license to carry out banking operations. It was reported that the bank has not complied with the laws and banking regulations defined in the central bank‘s regulatory requirements.

Russia’s central bank also stated that Kapitalbank engaged in highly risky lending policies relating to fund investing in low-quality assets.

Lithuanian shareholders in the bank include Valery Vorobjovas and Egidijus Bujanauskas who each have 10% shardholding and Vytautas Bėkšta with an 8.2% stake, reports izvestija.ru.

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Bankir.ru notes that Russian bankruptcy law states that a copy of the Bank of Russia order on the organization‘s banking operations license termination should be provided together with the credit organization’s statement for bankruptcy.

The Arbitration court said that Kapitalbank had not provided the proof of termination of the banking operation‘s license and so proceedings were adjourned.

DELFI

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