Bank of Russia Revoked Banking Licence from Ruscobank
OREANDA-NEWS. By its Order No. OD-1912, dated 21 June 2016, the Bank of Russia revoked the banking licence from the Vsevolzhsk-based credit institution joint-stock company Russian Commercial and Industrial Bank or JSC Ruscobank (Registration No. 138, the Leningrad Region) from 21 June 2016.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of the requirements of Articles 6 and 7 (except for Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and the related Bank of Russia regulations, and application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, given a real threat to the depositors’ and creditors’ interests.
JSC Ruscobank implemented high-risk lending policy connected with placement of funds into assets of unsatisfactory quality. The adequate risk assessment at the supervisor’s request repeatedly resulted in a considerable shortage of its capital and reasons for implementing insolvency (bankruptcy) prevention measures in the credit institution. In addition, JSC Ruscobank did not comply with the requirements of the legislation and Bank of Russia regulations on anti-money laundering and the financing of terrorism in terms of timely and detailed notification of the authorised body.
By its Order No. OD-1913, dated 21 June 2016, the Bank of Russia has appointed a provisional administration to JSC Ruscobank for the period until the appointment of a receiver pursuant to the Federal Law ‘On Insolvency (Bankruptcy)’ or a liquidator under Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In accordance with federal laws, the powers of the credit institution’s executive bodies are suspended.
According to the financial statements, as of 1 June 2016, JSC Ruscobank ranked 256th by assets in the Russian banking system.