OREANDA-NEWS. By its Order No. OD-2660, dated 6 October 2015, the Bank of Russia revoked the banking licence from the credit institution JOINT-STOCK COMMERCIAL BANK FOR DEVELOPMENT OF TIMBER INDUSTRY (open joint-stock company) or OJSC JSCB Lesbank (Registration No. 1598, the city of Moscow) from 6 October 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, the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)' as well as considering a real threat to the bank's creditors and investors.

OJSC JSCB Lesbank implemented high-risk lending policy and did not create loss provisions adequate to the risks assumed. The credit institution was involved in dubious operations. Besides, the credit institution violated instructions of the supervising authority and failed to comply with imposed restrictions on certain operations. Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal.

Pursuant to Bank of Russia Order No. OD-2661, dated 6 October 2015, a provisional administration was appointed to OJSC JSCB Lesbank for the period until the appointment of a receiver in accordance with 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.

OJSC JSCB Lesbank 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 September 2015, OJSC JSCB Lesbank ranked 433rd by assets in the Russian banking system.