OREANDA-NEWS. By its Order No. OD-1549, dated 3 July 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Gagarinsky or Bank Gagarinsky (Registration No. 606) from 3 July 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, and due to repeated violations within one year of the requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', and also taking into account application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

Bank Gagarinsky implemented high-risk lending policy and did not create adequate loan loss provisions commensurate with risks assumed. These practices consistently created grounds for the bank's initiating measures to prevent insolvency (bankruptcy). Besides, the credit institution did not comply with the requirements of legislation on anti-money laundering and combatting the financing of terrorism in respect of customer identification procedure. The management and owners of the bank have not taken measures required to normalise its activities.

By its Order No. OD-1550, dated 3 July 2015, the Bank of Russia has appointed a provisional administration to Bank Gagarinsky 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.

Bank Gagarinsky 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.

According to its financial statements, as of 1 June 2015, Bank Gagarinsky ranked 384th by assets in the Russian banking system.