The central bank of the Russian Federation on Tuesday announced that it had withdrawn a license from the bank Sovetskiy from St. Petersburg since July 3, while its investors will have a chance to continue servicing deposits in another bank.

"The decision of the Bank of Russia was made in connection with the value of all the standards of sufficiency of own funds (capital) below two percent, a decrease in the amount of equity (capital) below the minimum value of the authorized capital, established on the date of state registration of the credit institution," reads the website of the regulator .

As of June 1, 2018, the bank's own funds amounted to a negative value of 40.8 billion rubles.

Since October 2015, the temporary administration of the Deposit Insurance Agency (DIA) worked in the St. Petersburg bank, then the sanitized bank in March 2016 bought out Tatfondbank, which was deprived of its license by the Central Bank in 2017.

In February 2017, the functions of the temporary administration of the Soviet bank again moved to the DIA, and a year later - in February 2018 - to the Fund for the Consolidation of the Banking Sector, created by the Central Bank.

According to the financial statements, according to the size of assets, Soviets held 111th place in the banking system on June 1, 2018.

The Soviet Bank has been a participant in the deposit insurance system since 2004, but the standard scheme with payments from the deposit insurance fund will not be applied to it, the CBR decided to settle the obligations to the depositors, transferring their deposits to other banks with preservation of conditions.

The scheme for settling debts to depositors through the appointment of a distributing bank was previously used in the bankruptcy of Nota-Bank and Probusinessbank.

Tatarstan President Rustam Minnikhanov asked the CBR to apply it also to the collapsed Tatfondbank, but the first deputy chairman of the CBR, Dmitry Tulin, said at the time that it was impossible.

After the withdrawal of the bank's license, the Soviet DIA will participate in the settlement of the bank's obligations, it is again entrusted with the functions of the provisional administration until the appointment of the bankruptcy commissioner or liquidator.

The DIA will conduct a competitive selection of the acquirer of the bank's liabilities within a timeframe that will allow them to start servicing creditors whose claims are to be satisfied within the first stage no later than 14 days later.

"The credit organization, to which the obligations of JSC Bank Sovietsky will be transferred, will continue to service depositors on the same terms, including interest rates on deposits and terms of their placement," the CBR said.

The regulator indicated that the implementation of the procedure for settling the obligations of the Soviet bank will allow to fully satisfy the claims of the creditors of the first stage (including, if the contribution exceeds the insured amount - 1.4 million rubles), without the financial losses incurred by the depositors of the bank.

The bank's accounts state that on time deposits of the bank there were individuals' funds worth more than 36.8 billion rubles as of April 1 of this year. In addition, the bank was due to the DIA 10.79 billion rubles.

The press service of the DIA has not yet responded to Reuters' request for comments.

Obligations of the bank to creditors whose claims are subject to satisfaction as part of the second stage (claims for payment of severance pay, payment for employees working or working under an employment contract, etc.) are planned to be paid in full.

Liabilities to creditors of the third stage are estimated at 0.1 billion rubles, including balances on customers' accounts of legal entities are estimated at 0.01 billion rubles.