OREANDA-NEWS. By its Order No. OD-1109, dated 20 May 2015, the Bank of Russia revoked the banking licence from the Cherepovets-based credit institution joint-stock company Commercial Bank of Social Development Bumerang or JSC Comsotsbank Bumerang (Registration No. 1002, the Vologda Region) from 20 May 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, 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)'.

Due to the unsatisfactory quality of assets not generating sufficient cash flows, JSC Comsotsbank Bumerang failed to timely honour its liabilities to creditors. The management and owners of JSC Comsotsbank Bumerang did not take measures to normalise its activities and recover its financial status. In these circumstances, pursuant to Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia revoked the banking licence from JSC Comsotsbank Bumerang.

By its Order No. OD-1110, dated 20 May 2015, the Bank of Russia has appointed a provisional administration to JSC Comsotsbank Bumerang 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.

JSC Comsotsbank Bumerang 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.

According to the financial statements, as of 1 May 2015, JSC Comsotsbank Bumerang ranked 594th by assets in the Russian banking system.