On revocation of banking licence of credit institution ROSPROMBANK and appointment of provisional administration
By its Order No.OD-3052, dated 13 September 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank ROSSIYSKY PROMYSHLENNY BANK Company Limited or CB ROSPROMBANK Co. Ltd. (Registration No. 3204) from 13 September 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 violation within a year of the requirements of Articles 7 (with the exception of Clause 3 of Article 7) and 7.2 of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, as well as requirements of Bank of Russia regulations and the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, and considering the existence of a real threat to the interests of its creditors and depositors.
CB ROSPROMBANK Co. Ltd. implemented high-risk lending policy connected with the placement of funds into poor quality assets. The adequate risk assessment at the supervisor’s request and a reliable recognition of the bank’s assets resulted in the grounds for the credit institution to implement insolvency (bankruptcy) prevention measures. At the same time, CB ROSPROMBANK Co. Ltd. failed to comply with legislation requirements and Bank of Russia regulations in countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism as regards the submission of adequate information to the authorised body. CB ROSPROMBANK Co. Ltd. internal control rules in the said area were at odds with Bank of Russia requirements. Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal.
By its Order No. OD-3053, dated 13 September 2016, the Bank of Russia appointed a provisional administration to CB ROSPROMBANK Co. Ltd. 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 ROSPROMBANK Co. Ltd. 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 September 2016, CB ROSPROMBANK Co. Ltd. ranked 323rd by assets in the Russian banking system.
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