On revocation of banking licence from Bank Ussuri and appointment of provisional administration
By its Order No. OD-1326, dated 25.05.2018, the Bank of Russia revoked a banking licence from the Khabarovsk-based credit institution Joint-stock Company Bank Ussuri, further referred to as the credit institution (Reg. No. 596). As of 1 May 2018, the credit institution ranked 275th by assets in the Russian banking system, with unsubstantial impact on aggregate indexes of the Khabarovsk Region’s banking sector.
The credit institution management’s activities resulted in the emergence of overvalued assets in the credit institution’s balance sheet. The due diligence check of the value of assets, conducted at the regulator’s request, established a substantial loss of the credit institution’s capital and entailed the need for action to prevent the its insolvency (bankruptcy), which created a real threat to its creditors’ and depositors’ interests. Also, the credit institution conducted ‘scheme’ operations with bad loans, intended to artificially sustain the amount of capital and to create the appearance of its formal compliance with prudential regulations.
Also, the credit institution’s operations were found to be non-compliant 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 and the identification of its customers’ beneficiary owners.
The Bank of Russia repeatedly applied supervisory measures against the credit institution, including the imposition of restrictions on household deposit taking.
Under these circumstances, the Bank of Russia took the decision to withdraw Bank Ussuri 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 one 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.
In accordance with its Order No. OD-1327, dated 25.05.2018, the Bank of Russia appointed a provisional administration to Bank Ussuri 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 have been suspended.
Bank Ussuri 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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