Bank of Russia Revoked Licence from Just Bank LLC
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, revealed facts of considerable unreliability of the reporting data, and repeated application over the past year of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
The credit institution implemented high-risk lending policy connected with placement of funds into low-quality assets. The adequate assessment of the risks assumed and reliable reporting of the value of the bank's assets resulted in a 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. Besides, Just Bank LLC failed to meet the supervisor's requirements for creating the necessary loss provisions, presenting statements which reflect its real financial standing and there was reason to revoke the banking licence stipulated by Part 2 of Article 20 of the Federal Law 'On Banks and Banking Activity'.
The management and owners of the bank did not take measures to normalise its activities. In these circumstances the Bank of Russia revoked the banking licence from Just Bank LLC.
By its Order No. OD-2982, dated 2 November 2015, the Bank of Russia has appointed a provisional administration to Just Bank LLC 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.
According to the financial statements, as of 1 October 2015, Just Bank LLC ranked 483rd by assets in the Russian banking system.