On revocation of banking licence of the credit institution COMMERCIAL BANK KANSKY and appointment of provisional administration
By its Order No. OD-3490, dated 13 December 2017, the Bank of Russia revoked the banking licence of the Berezovka-based credit institution COMMERCIAL BANK KANSKY, limited liability company, or CB KANSKY LLC (Registration No. 860, Krasnoyarsk Territory, Berezovsky District) from 13 December 2017. According to the financial statements, as of 1 December 2017, the credit institution ranked 374th by assets in the Russian banking system.
The funding base of CB KANSKY LLC was formed by the funds raised from households and used for retail lending. The bank’s ineffective risk management and internal controls resulted in large volume of low-quality assets in its balance sheet. Furthermore, the Bank of Russia’s inspection revealed that CB KANSKY LLC had no primary documents for a considerable number of loan issues. The competent assessment of credit risk at the supervisor’s request revealed a complete loss of the credit institution’s equity capital.
The Bank of Russia has repeatedly applied supervisory measures to CB KANSKY LLC, including restrictions (on two occasions) and a ban on household deposit taking. The credit institution’s management and owners failed to take effective measures to bring its activities back to normal.
Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from CB KANSKY LLC in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
The Bank of Russia took such an extreme measure because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, equity capital adequacy ratios 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, and given the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
By its Order No. OD-3491, dated 13 December 2017, the Bank of Russia appointed a provisional administration to CB KANSKY 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 KANSKY 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.
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