On Revocation of Banking Licence of BaikalBank
OREANDA-NEWS. By its Order No. OD-2675, dated 18 August, the Bank of Russia revoked the banking licence from the Ulan-Ude-based credit institution BaikalBank, public joint-stock company, or BaikalBank PJSC from 18 August 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, equity capital adequacy ratios below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, given the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of BaikalBank PJSC in accordance with Part 2 of Article 20 of the Federal Law ‘On Banks and Banking Activities’.
By its Order No. OD-2676, dated 18 August 2016, the Bank of Russia has appointed a provisional administration to BaikalBank PJSC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the 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 August 2016, BaikalBank PJSC ranked 230th by assets in the Russian banking system.