OREANDA-NEWS. By its Order No. OD-2832, dated 16 October 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution open joint-stock company SODRUZHESTVO-BANK or OJSC SODRUZHESTVO-BANK (Registration No. 2923) from 16 October 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, capital adequacy below 2%, decrease in equity capital below the minimal amount of the authoruised capital established as of the date of the state registration of the credit institution, and taking into account the application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

Given unsatisfactory quality of assets, OJSC SODRUZHESTVO-BANK inadequately assessed the risks assumed. Adequate assessment of the credit risk at the supervisor's request revealed complete loss of the bank's capital.

The management and owners of the bank did not take measures to normalise its activities. In these circumstances, pursuant to Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia revoked the banking licence from the credit institution.

By its Order No. OD-2833, dated 16 October 2015, the Bank of Russia has appointed a provisional administration to OJSC SODRUZHESTVO-BANK for the period until the appointment of a receiver pursuant to the Federal Law 'On 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 SODRUZHESTVO-BANK 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 deposits of households determined in accordance with the legislation.

According to the financial statements, as of 1 October 2015, OJSC SODRUZHESTVO-BANK ranked 378th by assets in the Russian banking system.