On revocation of banking licence from credit institution Mezhtopenergobank and appointment of provisional administration
By its Order No. OD-2033, dated 20 July 2017, with effect from 20 July 2017, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Mezhtopenergobank PAO (Registration No. 2956). According to the financial statements, as of 1 July 2017, the credit institution ranked 108th by assets in the Russian banking system.
Mezhtopenergobank PAO placed funds in low-quality assets, including in construction and investment sectors, and inadequately assessed the risks assumed. The bank provided loans to companies not engaged in real economic activity. Moreover, the credit institution failed to comply with the requirements of laws and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to identifying operations subject to mandatory control, as well as submitting the required information to the authorised body.
The Bank of Russia repeatedly applied supervisory measures against Mezhtopenergobank PAO, including two-times restrictions on taking household funds on deposit.
The management and owners of the bank failed to take effective measures to normalise its activities. In addition, their behaviour was unscrupulous: they withdrew assets to the detriment of creditors’ interests.
Due to the poor quality of assets, which had failed to generate sufficient cash flow, Mezhtopenergobank PAO was incapable of honouring its obligations to creditors on time. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from Mezhtopenergobank PAO in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
The Bank of Russia took this decision because the credit institution failed to comply with the federal banking laws and Bank of Russia regulations, repeatedly violated within a year the requirements of Article 6 and 7 (excluding Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ and Bank of Russia regulations issued in pursuance thereof, and was incapable of satisfying creditors’ pecuniary claims, as well as with due regard to the measures stipulated by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ repeatedly applied against the bank within a year.
By its Order No. OD-2034, dated 20 July 2017, the Bank of Russia has appointed a provisional administration to Mezhtopenergobank PAO 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.
Mezhtopenergobank PAO 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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