On the revocation of banking licence and appointment of provisional administration
By Order No. OD-1249, dated 2 June 2014, the Bank of Russia revoked the banking licence of the Irkutsk-based credit institution Open joint-stock company Joint-stock Commercial Bank Radian or OJSC JSCB Radian (Registration No. 1675) from 2 June 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of requirements of Article 7 (except for Clause 3 of Article 7) of the Federal Law ‘On Counteracting the Legalisation (Laundering) of Criminally Obtained Incomes and Financing of Terrorism’ and taking into account the repeated application over the past year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
OJSC JSCB Radian implemented high-risk lending policy and did not create loan loss provisions adequate to accepted risks. Besides, the bank did not comply with the requirements of the legislation on counteracting the legalisation (laundering) of criminally obtained incomes and financing of terrorism in terms of timely notification of the authorised body of operations subject to obligatory control.
During 2013 the credit institution was involved in dubious operations in the amount exceeding 4.8 billion roubles. Management and owners of the credit institution failed to take measures aimed at normalization of its activity.
By its Order No. OD-1250, dated 2 June 2014, the Bank of Russia has appointed a provisional administration to OJSC JSCB Radian for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ 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.
OJSC JSCB Radian is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.
As of 1 May 2014, OJSC JSCB Radian was ranked 735th by assets in the Russian banking system.
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02.06.2014 00.00.00