24.11.2015, 23:37
Bank of Russia Revoked Licence from SVYAZNOY BANK
OREANDA-NEWS. By its Order No. OD-3290, dated 24 November 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Joint-stock Company SVYAZNOY BANK or SVYAZNOY BANK (Registration No. 1961) from 24 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, due to the fact that the values of all capital adequacy ratios of the bank are below two percent, because of decrease in the bank capital below the minimum amount of the authorised capital established as of the date of the state registration of the credit institution, and taking into account the repeated application over the past year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
SVYAZNOY BANK violated baking laws and Bank of Russia regulations by underestimating the credit risk. As a result of creating provisions adequate to the risks assumed, the credit institution has lost its equity capital.
Due to unsatisfactory quality of assets it was not feasible to conduct financial rehabilitation of SVYAZNOY BANK with the involvement of the state corporation Deposit Insurance Agency on reasonable economic terms. In these circumstances, guided by Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia performed its obligation and revoked the banking licence from the credit institution.
By its Order No. OD-3291, dated 24 November 2015, the Bank of Russia has appointed a provisional administration to SVYAZNOY BANK 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.
SVYAZNOY BANK 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 law. 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 one depositor.
According to the financial statements, as of 1 November 2015, SVYAZNOY BANK ranked 150th by assets in the Russian banking system.
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, due to the fact that the values of all capital adequacy ratios of the bank are below two percent, because of decrease in the bank capital below the minimum amount of the authorised capital established as of the date of the state registration of the credit institution, and taking into account the repeated application over the past year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
SVYAZNOY BANK violated baking laws and Bank of Russia regulations by underestimating the credit risk. As a result of creating provisions adequate to the risks assumed, the credit institution has lost its equity capital.
Due to unsatisfactory quality of assets it was not feasible to conduct financial rehabilitation of SVYAZNOY BANK with the involvement of the state corporation Deposit Insurance Agency on reasonable economic terms. In these circumstances, guided by Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia performed its obligation and revoked the banking licence from the credit institution.
By its Order No. OD-3291, dated 24 November 2015, the Bank of Russia has appointed a provisional administration to SVYAZNOY BANK 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.
SVYAZNOY BANK 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 law. 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 one depositor.
According to the financial statements, as of 1 November 2015, SVYAZNOY BANK ranked 150th by assets in the Russian banking system.
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