OREANDA-NEWS. By its Order No. OD-990, dated 24 March 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution COMMERCIAL BANK MIKO-BANK, limited liability company, or LLC CB MIKO-BANK (Registration No. 3195) from 24 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 the application 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 assets quality LLC CB MIKO-BANK 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, in mid-March 2016 the bank actually terminated its operational activities.

The management and owners of the bank failed to take effective measures to bring the situation back to normal. Under these circumstances, the Bank of Russia took a decision to revoke the banking licence of the credit institution LLC CB MIKO-BANK.

By its Order No. OD-991, dated 24 March 2016, the Bank of Russia has appointed a provisional administration to LLC CB MIKO-BANK 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 compliance with federal laws the powers of the credit institution's executive bodies have been suspended.

LLC CB MIKO-BANK 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 per depositor.

According to the financial statements, as of 1 March 2016, LLC CB MIKO-BANK ranked 392nd by assets in the Russian banking system.