18.03.2016, 00:33
Bank of Russia Revoked Licence from 1Bank
OREANDA-NEWS. By its Order No. OD-904, dated 17 March 2016, the Bank of Russia revoked the banking licence from the Vladikavkaz-based credit institution Joint-Stock Commercial Bank 1Bank, public joint-stock company, or PJSC JSCB 1Bank (Registration No. 2896) 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, 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.
With its poor asset quality PJSC JSCB 1Bank failed to adequately assess the risks assumed. An adequate assessment of the credit risk and a reliable recognition of the bank's assets resulted in the grounds for the credit institution to implement measures to prevent the bank's insolvency (bankruptcy). Besides, the credit institution failed to comply with restrictions on certain operations imposed by the Bank of Russia.
The management and owners of the credit institution did not take effective measures to normalise its activities. Under these circumstances, the Bank of Russia took a decision to revoke the banking licence from the credit institution PJSC JSCB 1Bank.
By its Order No. OD-905, dated 17 March 2016, the Bank of Russia has appointed a provisional administration to PJSC JSCB 1Bank 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 have been suspended.
PJSC JSCB 1Bank 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 one depositor.
According to the financial statements, as of 1 March 2016, PJSC JSCB 1Bank ranked 538th 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, 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.
With its poor asset quality PJSC JSCB 1Bank failed to adequately assess the risks assumed. An adequate assessment of the credit risk and a reliable recognition of the bank's assets resulted in the grounds for the credit institution to implement measures to prevent the bank's insolvency (bankruptcy). Besides, the credit institution failed to comply with restrictions on certain operations imposed by the Bank of Russia.
The management and owners of the credit institution did not take effective measures to normalise its activities. Under these circumstances, the Bank of Russia took a decision to revoke the banking licence from the credit institution PJSC JSCB 1Bank.
By its Order No. OD-905, dated 17 March 2016, the Bank of Russia has appointed a provisional administration to PJSC JSCB 1Bank 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 have been suspended.
PJSC JSCB 1Bank 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 one depositor.
According to the financial statements, as of 1 March 2016, PJSC JSCB 1Bank ranked 538th by assets in the Russian banking system.
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