Banking licence of NBCO PCC revoked and provisional administration appointed

By its Order No. OD-1624, dated 12 July 2019, the Bank of Russia revoked the banking licence from the Moscow-based Joint-stock Company Non-banking Credit Organization Private Cash Center or JSC NBCO PCC (Reg. No. 3420-K, further referred to as NBCO PCC). The credit institution ranked 464^th by assets in the Russian banking system.¹

The Bank of Russia took this decision in accordance with Clause 6, Part 1 and Clause 12, Part 2, Article 20 of the Federal Law ‘On Banks and Banking Activities’,² based on the facts that NBCO PCC:

• failed to increase capital to the minimum value established by the Federal Law ‘On Banks and Banking Activities’;
• violated federal banking laws and Bank of Russia regulations, making the regulator repeatedly apply supervisory measures over the last 12 months.

The management and owners of NBCO PCC failed to take effective measures to increase its capital to the minimum value of 90 million rubles as established by Article 11.2 of the Federal Law ‘On Banks and Banking Activities’ from 1 July 2019.

The Bank of Russia appointed a provisional administration³ to NBCO PCC for the period until the appointment of a receiver⁴ or a liquidator.⁵ In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.

NBCO PCC is not a member of the deposit insurance system.

¹ According to the financial statements as of 1 July 2019.

² The Bank of Russia took this decision in connection with the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated application of measures, within a year, stipulated by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, and the failure to comply with Parts 15 and 16, Article 11.2 of the Federal Law ‘On Banks and Banking Activities’, taking into account the fact that the non-bank credit institution failed to achieve the minimum capital as of 1 July 2019.

³ In accordance with Bank of Russia Order No. OD-1625, dated 12 July 2019.

⁴ In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.

⁵ In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.

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