OREANDA-NEWS. By its Order No. OD-1206, dated 1 June 2015, the Bank of Russia revoked a banking licence from the credit institution open joint-stock company Joint-Stock Siberian Oil Bank or OJSC SIBNEFTEBANK (Registration No. 385, the city of Tyumen) from 1 June 2015.

The Bank of Russia took such an extreme measure - revocation of a banking licence - due to the credit institution's failure to comply with federal banking legislation as well as Bank of Russia regulations, all capital adequacy ratios being below 2 per cent, 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 application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation' (Bank of Russia).

OJSC SIBNEFTEBANK implemented a high-risk lending policy connected with placing funds in low-quality assets. Creation of loan loss provisions adequate to the risks assumed resulted in a complete loss of the bank's capital. Both the management and owners of the bank did not take effective measures to streamline its activities. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.

By its Order No. OD-1207, dated 1 June 2015, the Bank of Russia has appointed a provisional administration to OJSC SIBNEFTEBAK 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 legislation, the powers of the credit institution's executive bodies are suspended.

OJSC SIBNEFTEBANK is a member of the deposit insurance system. The revocation of its 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 legislation.

According to the financial statements, as of 1 May 2015, OJSC SIBNEFTEBANK ranked 446th by assets in the Russian banking system.