Press Service

The Central Bank of the Russian Federation (Bank of Russia)

Press Service

12 Neglinnaya Street, Moscow, 107016 Russia;

Information Notice

On revocation of banking licence from PartnerCapitalBank and appointment of provisional administration

By its Order No. OD-240, dated 2 February 2018, the Bank of Russia revoked a banking licence from the Moscow-based credit institution PartnerCapitalBank (Joint-stock Company) or PartnerCapitalBank (JSC) (Registration No. 635) from 2 February 2018. According to its financial statements, as of 1 January 2018, the credit institution ranked 469th by assets in the Russian banking system.

The business model employed by PartnerCapitalBank (JSC) was mainly focused on placing funds in highly risky assets which led to the accumulation of significant problem debts on the balance sheet of this credit institution. At the same time, the bank was engaged in “scheme” operations in order to avoid the compliance with the supervisor’s requirements calling for the creation of provisions for possible losses commensurate with risks assumed.

PartnerCapitalBank (JSC) failed to comply with the requirements of the legislation and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to the provision of credible information to the authorised body about operations subject to obligatory control. Besides, in 2017 H2, the credit institution was actively involved in dubious payable-through operations.

The Bank of Russia repeatedly applied supervisory measures to PartnerCapitalBank (JSC), including two impositions of restrictions on household deposit taking.

The management and owners of the bank failed to take any effective measures to normalise its activities. As it stands, the Bank of Russia has taken the decision to withdraw PartnerCapitalBank (JSC) from the banking services market.

The Bank of Russia took this decision due the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of the requirements stipulated by Article 7 (except for Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and the requirements of Bank of Russia regulations issued in compliance with the indicated Federal Law, and taking into account repeated applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

By its Order No. OD-241, dated 2 February 2018, the Bank of Russia has appointed a provisional administration to PartnerCapitalBank (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 have been suspended.

PartnerCapitalBank (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. 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 a total of 1.4 million rubles per depositor.

02 February 2018

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