OREANDA-NEWS. By its Order No. OD-1179, dated 8 April 2016, the Bank of Russia revoked the banking licence of the credit institution Joint Stock Company FIA-BANK or JSC FIA-BANK (Registration No. 2542, Togliatti, Samara Region) from 8 April 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 the capital adequacy ratio of this credit institution was below 2% and its equity capital dropped down below the minimum authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, and taking into account the repeated application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

JSC FIA-BANK failed to adequately assess the risks assumed as the quality of assets was bad. The competent assessment of credit risk at the supervisor's request revealed a full loss of the bank's equity capital.

Due to the low asset quality the financial resolution of JSC FIA-BANK involving the state corporation Deposit Insurance Agency on reasonable economic terms seemed impossible. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.

By its Order No. OD-1180, dated 8 April 2016, the Bank of Russia has appointed a provisional administration to JSC FIA-BANK 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 the federal laws, the powers of the credit institution's executive bodies have been suspended.

JSC FIA-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 no more than RUB 1.4 million per one depositor. Over 95% of JSC FIA-BANK obligations to households and individual entrepreneurs are subject to indemnities in full.

According to reporting data, as of 1 March 2016, JSC FIA-BANK ranked 175th in the Russian banking system in terms of assets.