05.03.2016, 00:54
Bank of Russia Revoked Licence from LLC CB ROSAVTOBANK
OREANDA-NEWS. By its Order No. OD-766, dated 4 March 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Regional Sectoral Specialised Automotive Industry Bank, limited liability company, or LLC CB ROSAVTOBANK (Registration No. 2767) from 4 March 2016.
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, repeated violations within one year of Bank of Russia requirements stipulated by Articles 6, 7 (excluding Clause 3 of Article 7) of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', equity capital adequacy ratios below 2 per cent, decrease in bank equity capital below the minimum value of the authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, due to repeated application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', considering a real threat to the creditors' and depositors' interests.
LLC CB ROSAVTOBANK implemented high-risk lending policy and failed to create loan loss provisions adequate to the risks assumed. Due credit risk assessment resulted in a full loss of the bank's equity capital.
Besides, Bank LLC CB ROSAVTOBANK failed to meet the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, the timely notification of the authorised body about operations subject to obligatory control. Moreover, the bank was involved in dubious transit operations.
The management and owners of the credit institution did not take effective 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-767, dated 4 March 2016, the Bank of Russia has appointed a provisional administration to LLC CB ROSAVTOBANK for the period until the appointment of a receiver pursuant to the Federal Law 'On 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 ROSAVTOBANK 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 stipulates the insurance premium as 100% reimbursement of the balance of funds to bank depositors, including individual entrepreneurs, but not more than ? 1.4 million in aggregate per depositor.
According to the financial statements, as of 1 February 2016, LLC CB ROSAVTOBANK ranked 254th by assets in the Russian banking system.
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, repeated violations within one year of Bank of Russia requirements stipulated by Articles 6, 7 (excluding Clause 3 of Article 7) of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', equity capital adequacy ratios below 2 per cent, decrease in bank equity capital below the minimum value of the authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, due to repeated application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', considering a real threat to the creditors' and depositors' interests.
LLC CB ROSAVTOBANK implemented high-risk lending policy and failed to create loan loss provisions adequate to the risks assumed. Due credit risk assessment resulted in a full loss of the bank's equity capital.
Besides, Bank LLC CB ROSAVTOBANK failed to meet the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, the timely notification of the authorised body about operations subject to obligatory control. Moreover, the bank was involved in dubious transit operations.
The management and owners of the credit institution did not take effective 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-767, dated 4 March 2016, the Bank of Russia has appointed a provisional administration to LLC CB ROSAVTOBANK for the period until the appointment of a receiver pursuant to the Federal Law 'On 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 ROSAVTOBANK 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 stipulates the insurance premium as 100% reimbursement of the balance of funds to bank depositors, including individual entrepreneurs, but not more than ? 1.4 million in aggregate per depositor.
According to the financial statements, as of 1 February 2016, LLC CB ROSAVTOBANK ranked 254th by assets in the Russian banking system.
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