OREANDA-NEWS. By its Order No. OD-1697, dated 17 July 2015, the Bank of Russia revoked a banking licence from the credit institution Public Joint-Stock Company Gelendzhik-Bank or PJSC Gelendzhik-Bank (Registration No. 790, the city of Gelendzhik, Krasnodar Territory) from 17 July 2015.

The Bank of Russia took such an extreme measure - revocation of the banking licence - due to the credit institution's failure to comply with federal banking laws and Bank of Russia regulations and taking into account the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia).

With low quality assets PJSC Gelendzhik-Bank failed to adequately assess risks assumed. Besides, the Bank did not comply with supervisor's restrictions on carrying some banking operations. PJSC Gelendzhik-Bank was involved in dubious transit transactions in significant amounts. Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal amid conditions of a long corporate conflict.

By its Order No. OD-1698, dated 17 July 2015, the Bank of Russia has appointed a provisional administration to PJSC Gelendzhik-Bank 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.

PJSC Gelendzhik-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 legislation.

As of 1 July 2015, PJSC Gelendzhik-Bank was ranked 516th by assets in the Russian banking system.