On revocation of banking licence from Russian Trade Bank Limited Liability Company and appointment of provisional administration
By its Order No. OD-1034, dated 20 April 2018, effective from the same date, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Russian Trade Bank Limited Liability Company, or RTBK LLC (Registration No. 2842), further referred to as the credit institution. According to the financial statements, as of 1 April 2018, the credit institution ranked 215th by assets in the Russian banking system.
The credit institution’s business model was high-risk and focused on lending to related or shell companies. Some borrowers bore the marks of related parties. The credit institution failed to comply with the regulator’s requirements that the real financial position be reflected in its statements, submitting to the Bank of Russia essentially unreliable financial statements which concealed its operating problems necessitating the action to prevent its insolvency (bankruptcy).
The Bank of Russia repeatedly applied supervisory measures to the credit institution, including three impositions of restrictions on household deposit taking.
The management and owners of the bank failed to take any effective measures to normalise its activities. More so, the credit institution’s operations showed signs of misconduct by the management and owners who conducted withdrawal of assets to the detriment of creditors’ and depositors’ interests. The Bank of Russia submitted the information about these facts bearing signs of a criminal offence to law enforcement agencies.
As it stands, the Bank of Russia took the decision to withdraw RTBK LLC from the banking services market.
The Bank of Russia takes this measure following the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, in view of essentially unreliable reporting data submitted and taking into account that within a year measures were applied as envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, as well as considering a real threat to the creditors’ and depositors’ interests.
The evidence of essentially unreliable statements of the credit institution will be submitted, in compliance with Part 1.2 of Article 140 of the Criminal Procedure Code of the Russian Federation and Article 75.1 of the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, to the Investigative Committee of the Russian Federation for it to decide on the opening of a criminal case for an offence under Article 172.1 of the Criminal Code of the Russian Federation.
Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-1034, dated 20 April 2018, the credit institution’s professional securities market participant licence was cancelled.
By its Order No. OD-1035, dated 20 April 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 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.
RTBK 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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