OREANDA-NEWS. By Order No. OD-2985, dated 2 November 2015, the Bank of Russia revoked the banking licence of the Astrakhan-based credit institution Public Joint-stock Company Agroinvestment Commercial Bank, PJSC AGROINCOMBANK (Registration No. 1946) from 2 November 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. The bank's all capital adequacy ratios fell below 2%, its equity capital dropped below the minimum amount of the authorised capital established as of the date of state registration of the credit institution and also the bank was subject to repeated application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)' over the past year.

PJSC AGROINCOMBANK recorded in its statements securities which were actually absent and submitted false reporting to the Bank of Russia. As a result of the credit institution's compliance with the supervisor's requirements to make loan loss provisions adequate to risks assumed, a full loss of its equity capital was revealed. Moreover, the bank was involved in suspicious large-scale transit operations.

The management and owners of the credit institution failed to take effective measures to bring the situation back to normal. Therefore, based on Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia executed its duty on the revocation of the banking licence from the credit institution.

In pursuance of Bank of Russia Order No. OD-2986, dated 2 November 2015, a provisional administration has been appointed to PJSC AGROINCOMBANK for a term until the appointment of a receiver in accordance with the Federal Law 'On Insolvency (Bankruptcy)' or a liquidator in accordance with Article 23.1 of the Federal Law 'On Banks and Banking Activities'. In compliance with federal laws the powers of the credit institution's executive bodies have been suspended.

PJSC AGROINCOMBANK is a participant in the deposit insurance system. The revocation of the banking licence is recognised as an insured event stipulated by Federal Law No. 177-FZ 'On Insurance of Household Deposits in Russian Banks' with regard to the bank's obligations to honour household deposits identified in accordance with the procedure established by law. The said Federal Law provides for the payment of indemnities to the bank's depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than 1.4 million rubles per one depositor.

According to reporting data, as of 1 October 2015 PJSC AGROINCOMBANK ranked 581th in the Russian banking system in terms of assets.