On revocation of banking licence and appointment of provisional administration
By Order No. OD-1655, dated 7 July 2014, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank EastCom Finance, limited liability company, or CB ECF LLC from 7 July 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, ascertainment of significant corruption of the reported data, inability to satisfy its creditors’ claims on monetary liabilities 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)’. The Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
Due to the loss of liquidity, CB ECF LLC failed to timely honour its liabilities to depositors. The credit institution submitted to the Bank of Russia significantly corrupted reports that concealed the reasons to apply measures to prevent insolvency (bankruptcy) and revoke the banking licence.
The management and owners of the credit institution failed to take measures required to normalise its activities.
During 2013 and 2014 Q1, the credit institution was involved in dubious operations in the total amount of about 14 billion rubles.
By its Order No. OD-1656, dated 7 July 2014, the Bank of Russia has appointed a provisional administration to CB ECF LLC 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.
CB ECF LLC 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 June 2014, the credit institution ranked 727th by assets in the Russian banking system.
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07.07.2014 00.00.00