OREANDA-NEWS. By its Order No. OD-3588, dated 14 December 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Deal-Bank, limited liability company, or Deal-Bank LLC (Registration No. 3384) from 14 December 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, all equity (capital) adequacy ratios below 2 per cent, decrease in equity (capital) below the minimum amount of the authorised capital established as of the date of the state registration of the credit institution, and taking into account the repeated application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

Deal-bank LLC implemented high-risk lending policy connected with placement of funds into low-quality assets. As a result of meeting the supervisor's requirements on creating provisions adequate to the risks assumed, the bank fully lost its equity (capital). Besides, the credit institution was involved in dubious transit operations.

The management and owners of the credit institution did not take measures to normalise its activities. 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-3589, dated 14 December 2015, Bank of Russia has appointed a provisional administration to Deal-bank LLC 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.

Deal-bank LLC is a member of the deposit insurance system. The revocation of the banking licence is an insured event envisaged by Federal Law No. 177-FZ 'On Insurance of Household Deposits with Russian Banks' regarding the bank's liabilities on deposits of households determined in accordance with the legislation. The said Federal Law stipulates the insurance premium as 100% reimbursement of the available balance to bank depositors, including individual entrepreneurs, but not more than 1.4 million rubles in aggregate per depositor.

According to the financial statements, as of 1 December 2015, Deal-bank LLC ranked 222nd by assets in the Russian banking system.