On revocation of banking licence and appointment of provisional administration

By Order No. OD-1888, dated 25 July 2014, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank UNICOR, open joint-stock company, or OJSC UNICORBANK (Reg. No. 2586) from 25 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 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)’.

OJSC UNICORBANK implemented high-risk lending policy connected with placement of funds into low-quality assets. The creation of provisions adequate to risks assumed resulted in necessity to implement measures for insolvency (bankruptcy) prevention. At the same time, due to the unsatisfactory quality of assets which failed to accumulate sufficient cash flow, OJSC UNICORBANK failed to timely honour its liabilities to creditors and depositors. The management and owners of the credit institution have not taken measures required to normalise its activities and recover its financial status. Besides, OJSC UNICORBANK was involved in dubious operations connected with providing cash to customers and overseas money transfer schemes with total amount exceeding 21 billion rubles in 2013-2014.

By its Order No. OD-1889, dated 25 July 2014, the Bank of Russia has appointed a provisional administration to OJSC UNICORBANK 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.

OJSC UNICORBANK is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No. 177-FZ ‘On Insurance of Household Deposits with Russian Banks’ regarding the bank’s liabilities on deposits of households determined in accordance with the legislation.

As of 1 July 2014, OJSC UNICORBANK ranked 364^th by assets in the Russian banking system.

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25.07.2014 00.00.00