On revocation of banking licence of GAZBANK and appointment of provisional administration
By its Order No. OD-1740, dated 11.07.2018, the Bank of Russia revoked the banking licence of the Samara-based credit institution Joint-stock Company Commercial Bank GAZBANK (Registration No. 2316), further also referred to as the credit institution.
JSC CB GAZBANK consistently conducted transactions towards concealing its real financial standing and avoiding the supervisor’s requirements to adequately assess the risks assumed; the credit institution’s balance sheet includes a considerable amount of non-performing assets. Also, the credit institution’s operations were found non-compliant with legislative requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism.
The Bank of Russia repeatedly (11 times over the last 12 months) applied supervisory measures against JSC CB GAZBANK including two impositions of restrictions on household deposit taking.
The credit institution’s management and owners failed to take effective measures to normalise its activities. Under these circumstances, the Bank of Russia took the decision to revoke JSC CB GAZBANK’s banking licence.
The Bank of Russia took this measure following 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 regulations issued in accordance with the Federal Law ’On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and multiple applications within one year of measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’.
Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-1740, dated 11.07.2018, JSC CB GAZBANK’s professional securities market participant licence was revoked.
By its Order No. OD-1741, dated 11.07.2018, the Bank of Russia appointed a provisional administration to JSC CB GAZBANK 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 were suspended.
JSC CB GAZBANK is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
According to its financial statements, as of 01.07.2018, the credit institution ranked 134th by assets in the Russian banking system.
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