On revocation of banking licence of credit institution Stal Bank and appointment of provisional administration
By its Order No. OD-1909, dated 10 July 2017, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Stal Bank (limited liability company), or Stal Bank LLC (Registration No. 2248) from 10 July 2017. According to the financial statements, as of 1 June 2017, the credit institution ranked 527th by assets in the Russian banking system.
Stal Bank LLC has encountered problems due to its high-risky business model and, as a result, the low quality of a considerable portion of its assets. Besides, the bank has failed to properly assess its credit portfolio. The appropriate assessment of credit risk revealed a material loss of the capital of Stal Bank LLC and led to the emergence of grounds for initiating measures to prevent insolvency (bankruptcy) of the bank, which created a serious threat to its creditors’ and depositors’ interests. The absence of intentions, on the part of the bank’s owners, to take real measures to stabilise its financial situation points to the total uselessness of the further activities of this credit institution.
The Bank of Russia repeatedly applied supervisory measures to Stal Bank LLC, including restrictions on household deposit taking.
The management and owners of the bank failed to take effective measures to normalise its activities. Under the circumstances, the Bank of Russia has made the decision to withdraw Stal Bank LLC from the banking services market.
The Bank of Russia takes this 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, due to repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, considering a real threat to the creditors’ and depositors’ interests.
By its Order No. OD-1910, dated 10 July 2017, the Bank of Russia has appointed a provisional administration to Stal 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 have been suspended.
Stal 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.
The reference to the Press Service is mandatory if you intend to use this material.
10.07.2017 00.00.00