On revocation of banking licence from PJSC CB Accent and appointment of provisional administration
By Order No. OD-1249, dated 18.05.2018, the Bank of Russia revoked the banking licence of the Orsk-based credit institution Public Joint-stock Company Joint-stock Commercial Bank Accent, or PJSC CB Accent (Registration No. 696), further also referred to as the credit institution. As of 1 May 2018, the credit institution ranked 465th by assets in the Russian banking system. It was not a socially important lender, and its impact on aggregate indexes of the Orenburg Region’s banking sector was unsubstantial.
Problems in the credit institution’s operations owe its origin to an excessively risky business model, which resulted in multiple low-quality assets building up on its balance sheet. The due diligence check of credit risk conducted at the regulator’s request established a substantial loss of capital and entailed the need for action to prevent the credit institution’s insolvency (bankruptcy), which created a real threat to its creditors’ and depositors’ interests. Also, the credit institution conducted ‘scheme’ operations, involving its owners, intended to artificially sustain the amount of capital to create the appearance of formal compliance with prudential regulations.
Also, the credit institution’s operations were found to be non-compliant on multiple counts with Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to the accuracy of information the credit institution submitted to the authorised body, including about operations subject to obligatory control and the identification of its customers’ beneficiary owners.
The Bank of Russia repeatedly applied supervisory measures against PJSC CB Accent, including two impositions of restrictions on household deposit taking.
Under the circumstances the Bank of Russia took the decision to withdraw PJSC CB Accent from the banking services market.
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 a year of measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’, and taking into account a real threat to the interests of creditors and depositors.
Following the banking licence revocation, in accordance with Bank of Russia Order No. ОD-1249, dated 18.05.2018, the credit institution’s professional securities market participant licence was cancelled.
By its Order No. OD-1250, dated 18.05.2018, the Bank of Russia appointed a provisional administration to the credit institution 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 have been suspended.
PJSC CB Accent is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
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