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 Bank VVB and appointment of provisional administration

By its Order No. OD-891, dated 9 April 2018, the Bank of Russia revoked a banking licence from the Sevastopol-based credit institution Public Joint-stock Company Bank VVB (Registration No. 1093) from 9 April 2018. According to the financial statements, as of 1 March 2018, the credit institution ranked 179th by assets in the Russian banking system.

The activities of the management of PJSC Bank VVB resulted in the considerable amount of non-performing assets and property recognised at an inflated value in the credit institution’s balance sheet. Due to this, in December 2017, the bank was not able to perform its obligations to creditors. To protect the interests of creditors and depositors of PJSC Bank VVB and taking into account its importance for the Republic of Crimea and the city of Sevastopol, the Bank of Russia by its orders appointed a provisional administration and imposed a moratorium on meeting creditors’ claims.

Following the assessment conducted by the provisional administration, the fair presentation of asset value in the credit institution’s financial statements led to a full loss of its equity capital.

Moreover, the bank’s management repeatedly violated the statutory requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, the reliable notification of the authorised body about, among other things, operations subject to obligatory control.

The Bank of Russia repeatedly applied supervisory measures to PJSC Bank VVB, including two impositions of restrictions on household deposit taking.

Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from PJSC Bank VVB in accordance with Article 20 of Federal Law ‘On Banks and Banking Activities’.

The Bank of Russia took this decision because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of Bank of Russia requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ and Bank of Russia regulatory requirements issued in accordance with the said law, all equity capital adequacy ratios being below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, due to repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Following banking licence revocation, the functions of the provisional administration to manage PJSC Bank VVB appointed in accordance with Bank of Russia Order No. ОD-3474, dated 12 December 2017, are terminated pursuant to Bank of Russia Order No. ОD-892, dated 9 April 2018.

By its Order No. OD-893, dated 9 April 2018, the Bank of Russia has appointed a provisional administration to PJSC Bank VVB 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 Bank VVB is a member of the deposit insurance system. An insured event shall be deemed as occurring starting from the date the moratorium on meeting the claims of creditors of PJSC Bank VVB (12 December 2017), which shall also be the date used for the calculation of insurance indemnity for the bank’s liabilities in foreign currency.

The revocation of the banking licence, put in force before the moratorium on meeting creditor claims expires, shall not cancel the obligation of the state corporation Deposit Insurance Agency to pay out insurance indemnity.

The Agency will continue to pay out insurance indemnity for deposits (deposit accounts) with PJSC Bank VVB in accordance with Clause 2 of Part 1 of Article 8 of the Federal Law ‘On the Insurance of Household Deposits with Russian Banks’ — imposition by the Bank of Russia of the moratorium on meeting creditors’ claims until the completion of bankruptcy proceedings.

Information on the agent banks authorised to pay the insurance indemnity can be found on the official website of the state corporation Deposit Insurance Agency (

09 April 2018

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