OREANDA-NEWS. By its Order No. OD-3592, dated 14 December 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank for Development (limited liability company) or CB CBD BANK (LLC) (Registration No. 3364) 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, the repeated violations within a year of Bank of Russia regulations issued in accordance with the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)' and considering the existence of a real threat to creditors' and depositors' interest.

With low quality assets CB CBD BANK (LLC) failed to create loss provisions adequate to the risks assumed. Besides, the bank did not comply with Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism as regards notification of the authorised body about operations subject to obligatory control. Also, the credit institution was involved in dubious transit operations. Both management and owners of the bank did not take any effective measures to bring its activities back to normal.

By its Order No. OD-3593, dated 14 December 2015, the Bank of Russia has appointed a provisional administration CB CBD 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.

CB CBD BANK (LLC) 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, CB CBD BANK (LLC) ranked 566th in the Russian banking system in terms of assets.