There are many banks in the banking market that are waging a specific battle for customers. Before choosing a specific bank, a thorough analysis of its activities should be carried out. Examining information on a credit institution will help avoid potential problems in the future.
General information about the financial standard bank
Bank “Financial Standard” refers to the category of medium-sized banking structures. The financial interests of this organization are concentrated in the Moscow region. The banking organization has more than 20 offices, which are located in the suburbs and in Moscow. The credit company was founded in 1990 and was called at that time as "Jidaagrobank". This financial institution was the first to enter the deposit insurance system.
The bank's sales network includes branches located in Sevastopol, Kaliningrad and Novosibirsk. Also, a credit institution has one representative office in Crimea. The bank has an extensive own ATM network.
Activities of a credit institution
The Bank is focused on providing credit services and making transfers to accounts for medium and small businesses, trade, as well as companies whose activities are related to mediation, marketing, transport and the provision of other services to the population.
Until recently, Financial Standard Bank has been serving thousands of private clients and enterprises of various ownership forms. The banking structure offered consumer loans, currency exchange, deposits, plastic cards and tax-free returns for its customers.
The credit institution is owned by a group of private individuals, and Yury Lysenko is the chairman of the board. Among the main participants of the bank there are five companies registered in Cyprus. The main beneficiaries are Sergey Galchenko, Vadim Pristupa, Kirill Zagainov, Andrey Ispolatov, Victor Belyanin, Lilia Al-Nsur and Kirill Poldnev.
The main causes of bank insolvency
The problems of the Financial Standard bank began in April 2016. The Central Bank of Russia revoked its banking license on June 8, 2016. According to the press service of the Bank of Russia, such a financial institution invested funds in low-quality assets.
At the same time, the bank management did not create reserves that would correspond to the accepted risks. Poor asset quality could not generate permanent and sufficient cash flow. Therefore, the credit institution did not timely fulfill its own obligations to depositors and creditors.
A credit risk assessment showed that the bank has completely lost equity. The problems of the bank “Financial Standard” are in negative financial indicators, as well as low values of capital adequacy ratios.
This became the main prerequisite, which led to the inability to fully and timely meet the needs of investors. As a result, clients had problems with withdrawing deposits at the Financial Standard Bank. The Central Bank states that it has repeatedly applied appropriate measures within one year, which did not lead to a positive result.
Also, the Bank “Financial Standard” began to experience problems when it detected the conduct of transit operations of a dubious nature. Information has been verified by the Central Bank. The top management of the credit institution did not take the necessary measures to stabilize the activities of the credit institution. Therefore, the financial standard bank began to experience serious problems.
Compensation to investors
The Central Bank sent a request to this credit institution for the immediate submission of a request to terminate work with customer deposits. Since the credit institution is a member of the deposit insurance system, compensation payments are made to each depositor in the amount of the deposit amount, as well as accrued interest. However, the total cost of monetary compensation could not exceed 1.4 million rubles.
All bank account and bank deposit agreements that were concluded prior to the application of such measures are not subject to immediate termination. The only exceptions are situations in which the depositor is the initiator of receiving the deposit ahead of schedule.
What are people afraid of?
The Supervisory Committee of the Central Bank announced the decision to ban the opening of cash accounts and raising funds as deposits. The financial resources received in deposit accounts at the time of the moratorium were returned to customers in their active accounts.
An insignificant period of time the bank operated in a limited mode, which allowed to avoid the outflow of liquidity. However, there was serious concern and excitement among the customers regarding the restriction on cash withdrawals. Since April 2016, the Bank of Russia has banned the opening of new accounts and the acceptance of deposits from customers, so the bank's activities have ceased.
Reviews
There are different reviews about the Financial Standard Bank, as many customers cannot receive money. Customers also note a violation of the terms of deposit agreements and non-payment of interest. In many ways, such situations are associated with low liquidity indicators of the banking structure. That is why the bank cannot make payments to its customers and timely repay obligations to them. Negative reviews about the Financial Standard bank, whose problems began in April 2016, are overwhelming.
Clients say that a credit institution does not allow transferring funds from transit accounts to foreign currency. As a result, foreign exchange between accounts is not performed, and the funds freeze. The bank “Financial Standard” denied the arising problems with payments for a long time in order to reduce panic.
However, the negative financial condition of this credit structure has led customers to leave negative reviews about the bank. Some clients noted a positive attitude towards this banking structure and the operational work of specialists. Another part of clients expresses a neutral attitude towards the organization.
Many reviews agree that employees who conduct financial transactions often mislead their customers with unverified information. As a result, the number of customers is reduced, and the bank is losing part of the profit. Problems with withdrawing deposits at Financial Standard Bank are the most common, as most depositors complain about it.