18.03.2016, 00:32
Bank of Russia Revoked Licence from Ekaterininsky Bank
OREANDA-NEWS. By its Order No.OD-902, dated 17 March 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution public joint-stock company Agro-Industrial Bank Ekaterininsky or Ekaterininsky Bank PJSC (Registration No. 2167) from 17 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 a year of Bank of Russia requirements stipulated by Articles 6 and 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' as well as Bank of Russia regulations issued in accordance with the said law and application of the measures stipulated by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', taking into account a real threat to the interests of creditors and depositors.
Ekaterininsky Bank PJSC implemented a high-risk lending policy connected with the placement of funds in low-quality assets. An adequate assessment of the risks assumed by the supervisor's request resulted in the grounds for the credit institution to implement measures to prevent the bank's insolvency (bankruptcy).
Besides, the bank failed to comply with the requirements of law and the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting information to the authorised body on time and in full. Moreover, Ekaterininsky Bank PJSC was involved in dubious transit operations. The management and owners of the credit institution failed to take effective measures to bring the situation back to normal.
By its Order No. OD-903, dated 17 March 2016, the Bank of Russia has appointed a provisional administration to Ekaterininsky Bank PJSC 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.
Ekaterininsky Bank PJSC 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 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 no more than 1.4 million rubles per depositor.
According to the financial statements, as of 1 March 2016, Ekaterininsly Bank PJSC ranked 493rd 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 a year of Bank of Russia requirements stipulated by Articles 6 and 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' as well as Bank of Russia regulations issued in accordance with the said law and application of the measures stipulated by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', taking into account a real threat to the interests of creditors and depositors.
Ekaterininsky Bank PJSC implemented a high-risk lending policy connected with the placement of funds in low-quality assets. An adequate assessment of the risks assumed by the supervisor's request resulted in the grounds for the credit institution to implement measures to prevent the bank's insolvency (bankruptcy).
Besides, the bank failed to comply with the requirements of law and the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting information to the authorised body on time and in full. Moreover, Ekaterininsky Bank PJSC was involved in dubious transit operations. The management and owners of the credit institution failed to take effective measures to bring the situation back to normal.
By its Order No. OD-903, dated 17 March 2016, the Bank of Russia has appointed a provisional administration to Ekaterininsky Bank PJSC 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.
Ekaterininsky Bank PJSC 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 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 no more than 1.4 million rubles per depositor.
According to the financial statements, as of 1 March 2016, Ekaterininsly Bank PJSC ranked 493rd by assets in the Russian banking system.
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