On revocation of banking licence from credit institution SIBES Bank and appointment of provisional administration
By its Order No. OD-1134, dated 28 April 2017, the Bank of Russia revoked the banking licence from the Omsk-based credit institution SIBES Bank Joint-stock Company or SIBES Bank JSC (Registration No. 208) from 28 April 2017. According to reporting data, as of 1 April 2017, the credit institution ranked 352nd in the Russian banking system in terms of assets and did not have a material effect on the aggregate indicators of the Omsk Region’s banking sector (household funds — 1.4% and corporate funds — 0.09%).
The financial position of SIBES Bank JSC was characterised by extremely elevated risks caused by household debt refinancing and fraudulent transactions with consumer loan claims obtained from microfinance organisations.
Fictitious operations to change assets have been revealed in the bank’s activity. These operations were conducted to conceal the shortage of funds in the bank’s tills and its actual financial position. The unscrupulous behaviour of management and owners of the credit institution to withdraw assets, manipulate reporting data and disregard the supervisor’s requirements to make provisions adequate to the risks assumed is suggestive of the credit institution’s deliberate bankruptcy. Moreover, the bank’s activity this year has been largely oriented to suspicious transit operations with customers having negligent tax burden.
The Bank of Russia repeatedly applied supervisory measures to the credit institution, including restrictions on household deposit taking.
The management and owners of the bank have not taken so far effective measures to bring its activities back to normal. Under the circumstances, the Bank of Russia decided to withdraw the credit institution off 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 Article 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 the requirements of Bank of Russia regulations issued in compliance with the indicated Federal Law, because of established instances of material unreliability of financial statements 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)’.
After the credit institution’s statements were found considerably unreliable, in compliance with Part 1.2 of Article 140 of the Criminal Procedure Code of the Russian Federation and Article 75.1 of the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ the Bank of Russia will submit the respective materials to the Investigative Committee of the Russian Federation for it to decide on the opening of a criminal case for an offence under Article 172.1 of the Criminal Code of the Russian Federation.
By its Order No. OD-1135, dated 28 April 2017, the Bank of Russia has appointed a provisional administration to SIBES 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 are suspended.
SIBES 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.
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28.04.2017 00.00.00