On revocation of banking licence from credit institution RUBLEV and appointment of provisional administration

By its Order No. OD-1594, dated 27 June 2018, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Joint-stock Commercial Bank RUBLEV or Bank RUBLEV (Registration No. 3098) from 27 June 2018.

The business model of Bank RUBLEV was focused on raising household funds and their placement into inferior quality assets. The bank lost its capital after it created provisions adequate to the risks assumed as required by the supervisory authority. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from Bank RUBLEV in accordance with Article 20 of Federal Law ‘On Banks and Banking Activities’.

The Bank of Russia had repeatedly applied supervisory measures against Bank RUBLEV, which included a restriction and a ban on household deposit taking.

The Bank of Russia took such an extreme measure because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, equity capital adequacy ratios below two per cent, decrease in the bank’s equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, and given the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-1594, dated 27 June 2018, Bank RUBLEV professional securities market participant licence was revoked.

By its Order No. OD-1595, dated 27 June 2018, the Bank of Russia has appointed a provisional administration to Bank RUBLEV 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 were suspended.

Bank RUBLEV 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 a total of 1.4 million rubles per depositor.

According to the financial statements, as of 1 June 2018, the credit institution ranked 176^th by assets in the Russian banking system.

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