On revocation of banking licence of credit institution Vega-Bank and appointment of provisional administration
By its Order No. OD-4396, dated 9 December 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Vega-Bank (Limited Liability Company), or CB Vega-Bank LLC (Registration No. 3270) from 9 December 2016.
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 breaches of Articles 6 and 7 (except for Clause 3 of Article 7) of Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, non-compliance with Bank of Russia regulations related to the said Federal Law and because of the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, taking into account the real threat to the interests of creditors and depositors.
CB Vega-Bank LLC had low quality assets and inadeqately assessed risks assumed, failed to timely and properly provide information to the authorised body and thus did not comply with laws and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism. Moreover, the credit institution was involved in suspicious operations.
Management and owners of the bank did not take effective measures to bring its activities back to normal and under such circumstances the Bank of Russia decided to remove CB Vega-Bank LLC from the banking market.
By its Order No. OD-4397, dated 9 November 2016, the Bank of Russia appointed a provisional administration to CB Vega-Bank LLC 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 are suspended.
CB Vega-Bank 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.
According to the financial statements, as of 1 November 2016, CB Vega-Bank LLC ranked 304th by assets in the Russian banking system.
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