Press Service

On revocation of banking licence from credit institution Novopokrovskiy and appointment of provisional administration

By Order No. OD-3388, dated 4 December 2017, the Bank of Russia revoked the banking licence of the Krasnodar-based credit institution Commercial Bank Novopokrovskiy, limited liability company, or CB Novopokrovskiy LLC (Registration No. 467) from 4 December 2017. According to the financial statements, as of 1 November 2017, the credit institution ranked 208^th by assets in the Russian banking system.

CB Novopokrovskiy LLC failed to meet the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to the timely provision of information and credible notification of the authorised body about operations subject to obligatory control. The credit institution’ business model was focused on aggressive attraction of household funds and their placement into inferior quality assets.

The operations of CB Novopokrovskiy LLC bore signs of the management’s and owners’ unscrupulous conduct displayed through the so-called ‘schemes’ to avoid compliance with statutory requirements to create loss provisions commensurate with risks assumed.

The Bank of Russia repeatedly applied supervisory measures to the bank, including restrictions on household deposit taking.

Under the circumstances, the Bank of Russia took the decision to withdraw CB Novopokrovskiy LLC 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-3389, dated 4 December 2017, the Bank of Russia has appointed a provisional administration to CB Novopokrovskiy LLC 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.

CB Novopokrovskiy LLC 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.