OREANDA-NEWS. By its Order No. OD-3097, dated 10 November 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Public Joint-stock Company Regional Bank for Development or PJSC RBD (Registration No. 2782) from 10 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, established instances of material unreliability of financial statements, inability to satisfy its creditors' claims on monetary liabilities, and taking into account the repeated application over the past year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

PJSC RBD placed funds into low-quality assets and did not create adequate loan loss provisions commensurate with risks assumed. Due to unsatisfactory quality of assets and subsequent insufficient cash flows, the credit institution failed to timely honour its obligations to creditors. The bank submitted to the supervisor grossly unreliable financial statements, which concealed grounds for initiating measures to revoke the banking licence. The management and owners of the bank have not taken measures required to normalise its activities. In these circumstances, guided by Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia performed its obligation and revoked the banking licence from PJSC RBD.

By its Order No. OD-3098, dated 10 November 2015, the Bank of Russia has appointed a provisional administration to PJSC RBD 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.

PJSC RBD 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 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 not more than 1.4 million rubles per one depositor.

According to its financial statements, as of 1 October 2015, PJSC RBD ranked 280th by assets in the Russian banking system.