29.03.2016, 01:31
Bank of Russia Revoked Licence from Mosvodokanalbank
OREANDA-NEWS. By its Order No. OD-1015, dated 28 March 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Mosvodokanalbank, open joint-stock company, or OJSC CB MVKB (Registration No. 2863) from 28 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 Article 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' and Bank of Russia regulatory requirements issued in accordance with the said law, equity capital adequacy ratios below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established 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)'.
OJSC MVKB placed funds into low-quality assets and did not create loan loss provisions and provisions for other assets adequate to the risks assumed. As a result of meeting the supervisor's requirements on due assessment of available risks, the credit institution fully lost its equity capital. Besides, OJSC CB MVKB 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 and credible notification of the authorised body about operations subject to obligatory control.
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-1016, dated 28 March 2016, the Bank of Russia has appointed a provisional administration to OJSC CB MVKB 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 the federal laws, the powers of the credit institution's executive bodies have been suspended.
OJSC CB MVKB 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, OJSC CB MVKB ranked 532nd 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 Article 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' and Bank of Russia regulatory requirements issued in accordance with the said law, equity capital adequacy ratios below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established 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)'.
OJSC MVKB placed funds into low-quality assets and did not create loan loss provisions and provisions for other assets adequate to the risks assumed. As a result of meeting the supervisor's requirements on due assessment of available risks, the credit institution fully lost its equity capital. Besides, OJSC CB MVKB 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 and credible notification of the authorised body about operations subject to obligatory control.
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-1016, dated 28 March 2016, the Bank of Russia has appointed a provisional administration to OJSC CB MVKB 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 the federal laws, the powers of the credit institution's executive bodies have been suspended.
OJSC CB MVKB 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, OJSC CB MVKB ranked 532nd by assets in the Russian banking system.
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