Press Service

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

Press Service

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


On revocation of banking licence and appointment of provisional administration

By its Order No. OD-2480, dated 18 September 2015, the Bank of Russia revoked the banking licence from the credit institution Joint-stock commercial bank TUSAR (joint-stock company) or JSC TUSARBANK (Registration No. 2712, the city of Moscow) from 18 September 2015.

The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, all capital adequacy ratios below 2%, non-ability to meet monetary obligations to its creditors and the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

JSC TUSARBANK implemented high-risk lending policy and did not create loss provisions adequate to the risks assumed. Due to a poor quality of assets which did not generate sufficient cash flow, JSC TUSARBANK did not execute its obligations to depositors. Besides, after JSC TUSARBANK complied with the supervisor’s requirement to create loss provisions adequate to the risks assumed, the bank’s capital adequacy ratios were reduced to a critical level. In these circumstances, guided by Article 20 of the Federal law ‘On Banks and Banking Activities’, the Bank of Russia performed its obligation and revoked the banking licence from the credit institution.

By its Order No. OD-2481, dated 18 September 2015, the Bank of Russia appointed a provisional administration to JSC TUSARBANK 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 are suspended.

JSC TUSARBANK 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 legislation.

As of 1 September 2015, JSC TUSARBANK ranked 191st by assets in the Russian banking system.

18 September 2015

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