On revocation of banking licence from JSCB Mosuralbank (JSC) and appointment of provisional administration
By its Order No. OD-1555, dated 22.06.2018, the Bank of Russia revoked a banking licence of the Moscow-based credit institution Moscowsko-Uralsky Joint-stock Commercial Bank, or JSCB Mosuralbank (JSC), Registration No. 2468, further referred to as the credit institution. According to its financial statements, as of 01.06.2018, the credit institution ranked 269th by assets in the Russian banking system.
The credit institution’s business model was of a strongly captive nature and focused on serving the interests of its shareholders and their affiliated parties. Its lending operations and the conduct of transactions with entities related to the credit institution’s beneficiaries resulted in the considerable amount of non-performing assets in the credit institution’s balance sheet.
In contempt of the regulator’s requirements that the real financial position be reflected in its statements, the credit institution submitted to the Bank of Russia essentially unreliable financial statements which concealed its operating problems involving the need to take action to prevent its insolvency (bankruptcy) and to revoke its banking licence. The Bank of Russia will submit the information about these facts bearing signs of a criminal offence to law enforcement agencies.
The Bank of Russia repeatedly applied supervisory measures against the credit institution, including the imposition of restrictions on household deposit taking. The credit institution’s management and owners failed to take effective measures to normalise its activities. As it stands, the Bank of Russia has taken the decision to withdraw JSCB Mosuralbank (JSC) from the banking services market.
The Bank of Russia takes this measure following the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, in view of essentially unreliable reporting data submitted and taking into account that within a year measures were applied as 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.
By its Order No. OD-1556, dated 22.06.2018, the Bank of Russia appointed a provisional administration to JSCB Mosuralbank (JSC) 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 were suspended.
JSCB Mosuralbank (JSC) 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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