Press Service

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

Press Service

12 Neglinnaya Street, Moscow, 107016 Russia;
www.cbr.ru

Information Notice

On revocation of banking licence of credit institution North-West 1 Alliance Bank and appointment of provisional administration

By its Order No. OD-414, dated 16 February 2017, the Bank of Russia revoked the banking licence from the Saint Petersburg-based credit institution Joint-Stock Commercial Bank North-West 1 Alliance Bank, or Joint-Stock Company JSCB North-West 1 Alliance Bank JSC (Registration No. 766) from 16 February 2017.

The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, failure to adjust its authorised capital and equity as requested by the Bank of Russia and in time, stipulated by Paragraph 4.1 of Chapter IX of the Federal Law ‘On Insolvency (Bankruptcy)’, and given repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

JSCB North-West 1 Alliance Bank JSC placed funds in low quality assets and inadequately assessed the risks assumed. As a result of the execution of supervisiory body’s order to establish adequate provisions, bank’s equity dropped below the level of registered authorised capital. The bank failed to adjust its authorised capital and equity as requested by the Bank of Russia and in time, established by law. The management and owners of the bank did not take effective measures to bring its activities back to normal and under such circumstances, in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia performed its duty and revoked the banking licence.

By its Order No. OD-415, dated 16 February 2017, the Bank of Russia appointed a provisional administration to JSCB North-West 1 Alliance Bank JSC 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 are suspended.

JSCB North-West 1 Alliance Bank 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 1.4 million rubles per depositor.

According to the financial statements, as of 1 February 2017, JSCB North-West 1 Alliance Bank JSC ranked 547th by assets in the Russian banking system.

16 February 2017

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