On revocation of banking licence of Moscow Bill Bank and appointment of provisional administration
By its Order No. OD-2149, dated 17.08.2018, effective 17.08.2018, the Bank of Russia revoked a banking licence from the Moscow-based credit institution Joint-stock Bank Moscow Bill Bank (Registration No. 2697), further referred to as the credit institution. According to its financial statements, as of 01.08.2018 the credit institution ranked 419th by assets in the Russian banking system.
The credit institution’s consistently conducted transactions towards concealing its real financial standing and avoiding the supervisor’s requirements to adequately assess the risks assumed resulted in the emergence on its balance sheet of a considerable amount of assets of questionable quality. The due diligence check of the value of the specified assets, conducted at the regulator’s request, revealed a significant deterioration in the bank’s indicators, suggesting the need for action to prevent its insolvency (bankruptcy) and, consequently, a real threat to its creditors’ and depositors’ interests.
The Bank of Russia had repeatedly (four times over the last 12 months) applied supervisory measures against the credit institution including restrictions on household deposit taking.
However, the bank’s management and owners failed to take effective measures to normalise its activities. Under these circumstances, the Bank of Russia took the decision to revoke Joint-stock Bank Moscow Bill Bank’s banking licence.
The Bank of Russia takes this extreme measure — the revocation of a banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, 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)’, and considering a real threat to the creditors’ and depositors’ interests.
By its Order No. OD-2150, dated 17.08.2018, the Bank of Russia appointed a provisional administration to the credit institution for the period until the appointment of a receiver pursuant to the Federal Law ‘On the 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 were suspended.
Joint-stock Bank Moscow Bill Bank is a member of the deposit insurance system. The revocation of a banking licence is an insured event as stipulated by Federal Law No.
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