Banking licence of Bank ‘Megapolice’, Ltd revoked
By its Order No. OD-474, dated 26 March 2021, the Bank of Russia revoked the banking licence of the Cheboksary-based Commercial Bank ‘Megapolice’, Ltd (Bank ‘Megapolice’, Ltd) (Registration No. 3265; hereinafter, Bank Megapolice). The credit institution ranked 234th by assets in the Russian banking system.1
The Bank of Russia made this decision in accordance with Clause 6 of Part 1 of Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that Bank Megapolice:
- violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied measures against it over the past 12 months, which included restrictions on household deposit-taking3 and on the performing of cash foreign currency sale and purchase transactions with individuals.
Bank Megapolice understated the amount of loan loss provisions to be set up and overstated the value of assets in order to artificially improve its financial indicators and conceal its actual financial standing.
The control measures to purchase foreign currency performed by the Bank of Russia revealed repeated cases when Bank Megapolice failed to reflect such operations in its accounting.
The Bank of Russia will submit information about the bank's transactions suggesting a criminal offence to law enforcement agencies.
The Bank of Russia appointed a provisional administration4 to Bank Megapolice for the period until the appointment of a receiver5 or a liquidator.6 In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: Bank Megapolice is a participant in the deposit insurance system; therefore depositors will be compensated for their deposits in the amount of 100% of the balance of funds, but no more than a total of 1.4 million rubles per depositor (including interest accrued), except the cases stipulated by Chapter 2.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’.
Deposits are to be repaid by the State Corporation Deposit Insurance Agency (hereinafter, the Agency). Depositors may obtain detailed information regarding the repayment procedure 24/7 at the Agency’s hotline
1 According to the financial statements as of 1 March 2021.
2 The Bank of Russia made this decision due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, and given the repeated application within a year of the measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
3 Depositor — a citizen of the Russian Federation, foreign citizen or person without citizenship, including those engaged in entrepreneurial activity, or a legal entity specified in Article 5.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’ which concluded a bank deposit/account agreement with a bank, or any of the above mentioned persons in whose favour the deposit was made and (or) who is the holder of a savings certificate, or an owner of a special account (special deposit) intended to form and use the fund of capital repairs of common property in an apartment house opened in accordance with the requirements of the Housing Code of the Russian Federation.
4 In accordance with Bank of Russia Order No. OD-475, dated 26 March 2021.
5 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
6 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
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26.03.2021 00.00.00