23.11.2015, 22:29
Bank of Russia Revoked Banking Licence of OJSC CB Maximum
OREANDA-NEWS. By its Order No. OD-3273, dated 23 November 2015, the Bank of Russia revoked the banking licence of the credit institution Open Joint-stock Commercial Bank Maximum or OJSC CB Maximum (Registration No. 466, the city of Volgodonsk, the Rostov Region) from 23 November 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 and taking into account the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia), as well as the existence of a real threat to the interests of the bank's creditors and depositors.
OJSC CB Maximum implemented high-risk lending policy and did not create loan loss provisions adequate to the risks assumed. At the same time the activity of the credit institution was aimed at aggressive attraction of household funds. Under fund attraction limitation conditions introduced by the supervisory authority, OJSC CB Maximum kept on attracting the funds including in its internal structural units in the city of Moscow at the rates far above the market level.
By its Order No. OD-3274, dated 23 November 2015, the Bank of Russia has appointed a provisional administration to OJSC CB Maximum 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.
OJSC CB Maximum 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. 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 depositor.
According to reporting data, as of 1 November 2015, OJSC CB Maximum ranked 675th in the Russian banking system in terms of assets.
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 and taking into account the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia), as well as the existence of a real threat to the interests of the bank's creditors and depositors.
OJSC CB Maximum implemented high-risk lending policy and did not create loan loss provisions adequate to the risks assumed. At the same time the activity of the credit institution was aimed at aggressive attraction of household funds. Under fund attraction limitation conditions introduced by the supervisory authority, OJSC CB Maximum kept on attracting the funds including in its internal structural units in the city of Moscow at the rates far above the market level.
By its Order No. OD-3274, dated 23 November 2015, the Bank of Russia has appointed a provisional administration to OJSC CB Maximum 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.
OJSC CB Maximum 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. 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 depositor.
According to reporting data, as of 1 November 2015, OJSC CB Maximum ranked 675th in the Russian banking system in terms of assets.
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