OREANDA-NEWS. By its Order No. OD-3095, dated 10 November 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution joint-stock company Commercial Bank Russian Slavic Bank or JSC BANK RSB 24 (Registration No. 1073) from 10 November 2015.

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, 7 (except for Clause 3 of Article 7) and 7.2 of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', taking account of a real threat to creditors' and depositors' interests.

JSC BANK RSB 24 implemented high-risk lending policy and failed to create loan loss provisions adequate to the risks assumed. Besides, the bank did not comply with the requirements of the legislation on anti-money laundering and the financing of terrorism with regard to notification of the authorised body about operations subject to obligatory control and the procedure for customer identification when conducting non-cash settlements on their behalf. At the same time, the credit institution was involved in dubious large-scale transit operations.

By its Order No. OD-3096, dated 10 November 2015, the Bank of Russia has appointed a provisional administration to JSC BANK RSB 24 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.

JSC BANK RSB 24 is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No. 177-FZ 'On Insurance of Household Deposits with Russian Banks' regarding the bank's obligations on deposits of households determined in accordance with the legislation. This Federal Law provides for the payment of insurance indemnity to the bank's depositors, including individual entrepreneurs, in the amount of 100% of their balances but not exceeding the total of 1.4 million rubles per depositor.

According to the financial statements, as of 1 October 2015, JSC BANK RSB 24 ranked 124th by assets in the Russian banking system.