On revocation of banking licence from credit institution New Symbol Bank and appointment of provisional administration

By its Order No. OD-3320, dated 27 November 2017, the Bank of Russia revoked the banking licence from the Moscow-based credit institution New Symbol Bank (JSC) (Registration No. 370) from 27 November 2017. According to the financial statements, as of 1 November 2017, the credit institution ranked 420^th by assets in the Russian banking system.

New Symbol Bank failed to comply with the requirements of laws and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to identifying operations subject to mandatory control, as well as submitting reliable information to the authorised body. Moreover, in 2016-2017, New Symbol Bank was involved in dubious payable-through operations. The Bank of Russia repeatedly applied supervisory measures to the credit institution, including three impositions of restrictions on certain operations, including household deposit taking.

The behaviour of the bank’s management and owners was unscrupulous, which was evidenced by the failure to comply with restrictive measures imposed by the supervisor, by operations to withdraw liquid assets to the detriment of creditors and depositors’ interests, as well as by dubious operations to avoid the compliance with the supervisor’s requirements to create loss provisions commensurate with risks assumed.

Under these circumstances, the Bank of Russia took the decision to withdraw New Symbol Bank from the banking services market.

The Bank of Russia took this decision due the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of the requirements stipulated by Articles 6 and 7 (except for Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ and taking into account repeated applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-3320, dated 27 November 2017, New Symbol Bank’s professional securities market participant licence was revoked.

By its Order No. OD-3321, dated 27 November 2017, the Bank of Russia has appointed a provisional administration to New Symbol Bank (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 have been suspended.

New Symbol Bank (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. 177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by law. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per depositor.

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27.11.2017 00.00.00