OREANDA-NEWS. By its Order No. OD-1721, dated 21 July 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Joint-Stock Commercial Bank United Bank of Industrial Investments, public joint-stock company, or JSCB UBII PJSC (Registration No. 2626) from 21 July 2015.

The Bank of Russia took such an extreme measure - revocation of the banking licence - because of the failure of the credit institution to comply with federal banking laws and Bank of Russia regulations, and established facts of material financial misstatements, and failure to meet pecuniary obligations to creditors, considering repeated application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

JSCB UBII PJSC deposited funds in low-quality assets and did not create loan loss provisions adequate to the risks assumed. Due to unsatisfactory asset quality to generate sufficient cash flow, the credit institution failed to meet obligations to creditors on a timely basis. The bank materially mispresented its financial statements to the supervisor to hide available grounds for the revocation of the banking licence. The management and owners of the bank did not take required measures to normalise its activities. Under such circumstances, the Bank of Russia discharged its duty to revoke the banking licence of JSCB UBII PJSC as stipulated by Article 20 of the Federal Law 'On Banks and Banking Activities'.

By its Order No. OD-1722, dated 21 July 2015, the Bank of Russia has appointed a provisional administration to JSCB UBII PJSC 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.

JSCB UBII PJSC 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 household deposits determined in accordance with the legislation.

According to the financial statements, as of 1 July 2015, JSCB UBII PJSC ranked 378th by assets in the Russian banking system.