OREANDA-NEWS. By its Order No. OD-2778, dated 9 October 2014, the Bank of Russia revoked the banking licence from the Rostov-on-Don-based credit institution Commercial Bank Doninvest, limited liability company, or CB Doninvest LLC (Registration No. 1617) from 9 October 2014.

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, inability to meet the creditors' claims on monetary obligations and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

CB Doninvest LLC implemented high-risk lending policy connected with the placement of funds into low-quality assets. Due to the unsatisfactory quality of assets not generating sufficient cash flows, the bank failed to timely honour its liabilities to creditors and depositors. The management and owners of CB Doninvest LLC did not take measures to normalise its activities and recover its financial status. Under these circumstances, pursuant to Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia revoked the banking licence from CB Doninvest LLC.

By its Order No. OD-2779, dated 9 October 2014, the Bank of Russia has appointed a provisional administration to CB Doninvest LLC for the period until the appointment of a receiver pursuant to the Federal Law 'On the Insolvency (Bankruptcy) of Credit Institutions' 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.

CB Doninvest LLC 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 liabilities on deposits of households determined in accordance with the legislation.

According to the financial statements, as of 1 September 2014, CB Doninvest LLC ranked 510thby assets in the Russian banking system.