On revocation of banking licence from PRISCO CAPITAL BANK and appointment of provisional administration
By its Order No. OD-2079, dated 29 June 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution joint-stock company Commercial Bank PRISCO CAPITAL BANK or JSC CB PRISCO CAPITAL BANK (Registration No. 2537) from 29 June 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, capital adequacy below 2%, decrease in equity capital below the minimal amount of the authoruised capital established as of the date of the state registration of the credit institution, and given a 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)’.
JSC CB PRISCO CAPITAL implemented high-risk lending policy connected with placement of funds into low-quality assets. As a result of creating provisions adequate to the risks assumed, the bank lost its equity capital. The credit institution failed to meet the supervisor’s requirements with regard to bans on certain operations designed to protect the depositors’ interests.
The management and owners of the credit institution did not take measures to normalise its activities. In these circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked the banking licence from the credit institution.
By its Order No. OD-2080, dated 29 June 2016, the Bank of Russia has appointed a provisional administration to JSC CB PRISCO CAPITAL for the period until the appointment of a receiver pursuant to the Federal Law ‘On 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.
JSC CB PRISCO CAPITAL is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.
According to the financial statements, as of 1 June 2016, JSC CB PRISCO CAPITAL ranked 354th by assets in the Russian banking system.
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29.06.2016 00.00.00