OREANDA-NEWS. By its Order No. OD-2636, dated 16 August 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution JSCB Russian Trust Bank (JSC) from 16 August 2016.

The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, capital adequacy ratios being below 2 percent, decrease in capital below the minimal value of the authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, and the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Given unsatisfactory quality of its assets, JSCB Russian Trust Bank (JSC) inadequately assessed the risks assumed. A proper assessment of the credit risk on a supervisor’s demand revealed a full loss of the bank’s capital. Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Under these circumstances based on Article 20 of the Federal Law ‘On Banks and Banking Activities’ the Bank of Russia fulfilled its duty to revoke the banking licence of JSCB Russian Trust Bank (JSC).

The Bank of Russia appointed a provisional administration to JSCB Russian Trust Bank (JSC) for the period until the appointment of a receiver pursuant or a liquidator. In accordance with federal laws, the powers of the credit institution’s executive bodies are suspended.

According to reporting data, as of 1 August 2016, JSCB Russian Trust Bank (JSC) ranked 262th in the Russian banking system in terms of assets.