On revocation of banking licence from credit institution ROSENERGOBANK and appointment of provisional administration
By its Order No. OD-942, dated 10 April 2017, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank ROSENERGOBANK (joint-stock company) or CB REB (JSC) (Registration No. 2211) from 10 April 2017.
The credit institution failed to honour its liabilities to creditors due to which the Bank of Russia had to revoke its banking licence. CB REB (JSC) violated the Bank of Russia’s instruction and recorded unreliable information about outstanding liabilities to creditors in its statements to be submitted to the supervisor. The regulator has repeatedly applied supervisory measures to the credit institution, including restrictions on household deposit taking.
CB REB (JSC) faced problems due to the use of high-risk business model, low quality of management and assets. The bank’s activity displays misconduct of the management and owner in terms of asset diversion (primarily through the issue of loans to legal entities which were found to be shell companies) to the detriment of creditors and depositors, and misreporting.
The management and owners of CB REB (JSC) have not taken effective measures to bring its activities back to normal. Under these circumstances, 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’.
Given that the licence has been revoked from CB REB (JSC) after its statements were found considerably unreliable, in compliance with Part 1.2 of Article 140 of the Criminal Procedure Code of the Russian Federation and Article 75.1 of the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ the Bank of Russia will submit the related materials to the Investigative Committee of the Russian Federation for it to decide on the opening of a criminal case for an offence under Article 172.1 of the Criminal Code of the Russian Federation.
By its Order No. OD-943, dated 10 April 2017, the Bank of Russia has appointed a provisional administration to CB REB (JSC) for the period until the appointment of a receiver pursuant to the Federal Law ‘On the 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 REB (JSC) 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 March 2017, CB REB (JSC) ranked 92th by assets in the Russian banking system.
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10.04.2017 00.00.00