14.12.2015, 22:45
Bank of Russia Revoked Licence of CB Renaissance
OREANDA-NEWS. By its Order No. OD-3590, dated 14 December 2015, the Bank of Russia revoked the banking licence of the Moscow-based credit institution limited liability company commercial bank RENAISSANCE or LLC CB Renaissance (Registration No. 1939) from 14 December 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, all capital adequacy ratios being below 2 percent and the application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
LLC CB Renaissance implemented high-risk lending policy and did not create loan loss provisions adequate to the risks assumed. Credit risk adequate assessment requested by the supervisory authority revealed a critical decrease in the capital adequacy ratios. At the same time, the credit institution was involved in dubious operations connected with overseas money transfer and dubious transit operations in significant amounts.
Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.
By its Order No. OD-3591, dated 14 December 2015, the Bank of Russia has appointed a provisional administration to LLC CB Renaissance 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.
LLC CB Renaissance 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 December 2015, LLC CB Renaissance ranked 242nd 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, all capital adequacy ratios being below 2 percent and the application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
LLC CB Renaissance implemented high-risk lending policy and did not create loan loss provisions adequate to the risks assumed. Credit risk adequate assessment requested by the supervisory authority revealed a critical decrease in the capital adequacy ratios. At the same time, the credit institution was involved in dubious operations connected with overseas money transfer and dubious transit operations in significant amounts.
Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.
By its Order No. OD-3591, dated 14 December 2015, the Bank of Russia has appointed a provisional administration to LLC CB Renaissance 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.
LLC CB Renaissance 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 December 2015, LLC CB Renaissance ranked 242nd in the Russian banking system in terms of assets.
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