OREANDA-NEWS. By its Order No. OD-2677, dated 18 August 2016, the Bank of Russia revoked the banking licence of the Pyatigorsk-based credit institution Commercial bank GRiS-Bank limited liability company or CB GRiS-BANK LLC (Registration No. 1928, Stavropol Territory, the city of Pyatigorsk) 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, because of the repeated violations within one year of the requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and taking into account the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

CB GRiS-Bank LLC placed funds into low-quality assets and did not create loan loss provisions adequate to the risks assumed. Besides, the credit institutions failed to comply with legislative requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting information to the authorised body on time and in full. Under the circumstances, the Bank of Russia took a decision to withdraw CB GRiS-BANK LLC from the banking services market.

By its Order No. OD-2678, dated 18 August 2016, the Bank of Russia has appointed a provisional administration to CB GRiS-Bank LLC 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, CB GRiS-BANK LLC ranked 615th by assets in the Russian banking system.