The Russian Central Bank has agreed to put the case into Dagenergobank's bankruptcy on hold, according to Ferid Alipulatov, the spokesman of the Dagestan Court of Arbitration, TASS reports.
The Central Bank cancelled the license of Dagenergobank on March 24, 2015. It filed a suit to the Dagestan Court of Arbitration on April 14 to close the bank down.
The bank was conducting a high-risk credit policy, allocating deposits to unreliable assets. The bank was ignoring the demands of surveillance agencies to form reserves to cover potential losses. The bank had problems with accountability.
Dagenergobank was ranked 419 on the list of the Russian banks with the largest assets, as of 1 March 2015.
