On Revocation of Banking Licence of Centrcombank
OREANDA-NEWS. By its Order No. OD-3256, dated 26 September 2016, the Bank of Russia revoked a banking licence of the Moscow-based credit institution Central Commercial Bank, limited liability company, or Centrcombank LLC (Registration No. 2983) from 26 September 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 the federal banking laws and the Bank of Russia regulations, repeated violations within a year of requirements, stipulated in Article 7, except for clause 3, Article 7, of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ and the requirements of the Bank of Russia regulations issued in compliance with the said Federal Law, 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)’, considering a real threat to the creditors’ and depositors’ interests.By its Order No. OD-3257, dated 26 September 2016, the Bank of Russia has appointed a provisional administration to Centrcombank 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.
Centrcombank LLC is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No. 177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by legislation. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but not more than 1.4 million rubles per depositor.
According to reporting data, as of 1 September 2016, Centrcombank LLC ranked 206th in terms of assets in the Russian banking system.