Press Service

The Central Bank of the Russian Federation (Bank of Russia)

Press Service

12 Neglinnaya Street, Moscow, 107016 Russia;

Information Notice

On revocation of banking licence of Tatfondbank and appointment of provisional administration

By its Order No. OD-542, dated 3 March 2017, the Bank of Russia revoked the banking licence from the Kazan-based credit institution public joint-stock company Tatfondbank or PJSC Tatfondbank (Reg. No. 3058) from 3 March 2017.

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 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)’.

Given the unsatisfactory quality of assets, PJSC Tatfondbank assessed inadequately the risks assumed. As a result of proper credit risk assessment and objective accounting of the asset value in the credit institution’s statements, the bank lost its whole equity capital. The management and owners of the bank did not take measures to bring its activities back to normal.

Given the low quality of assets, it was deemed impossible to carry out financial resolution of PJSC Tatfondbank through the state corporation Deposit Insurance Agency and its creditors on reasonable economic conditions. In these circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked the banking licence of the credit institution.

By its Order No. OD-543, dated 3 March 2017, the Bank of Russia terminated the activity of the provisional administration of PJSC Tatfondbank due to the revocation of its banking licence. The functions of the provisional administration were performed by the state corporation Deposit Insurance Agency under the Bank of Russia Order No. OD-4536, dated 15 December 2016.

By its Order No. OD-544, dated 3 March 2017, the Bank of Russia has appointed a provisional administration to PJSC Tatfondbank 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.

PJSC Tatfondbank is a member of the deposit insurance system. The insured event shall be deemed to have occurred on the date of the imposition of moratorium to meet claims of the creditors of PJSC Tatfondbank (15 December 2016). The insurance benefit on the bank’s liabilities denominated in foreign currency shall also be calculated as of that data.

The revocation of the banking licence before the expiry of the moratorium to meet creditors’ claims shall not cancel its legal consequences, including the obligation of the state corporation Deposit Insurance Agency to pay the insurance benefits on deposits.

The Agency continues to pay the insurance benefits on deposits (accounts) with PJSC Tatfondbank in compliance with Clause 2 of Part 1 of Article 8 of the Federal Law ‘On Insurance of Household Deposits with Russian Banks’ — the imposition by the Bank of Russia of the moratorium to meet creditors’ claims until the completion of bankruptcy proceedings.

The Information about the agent banks authorised to pay the insurance benefits is published on the website of the state corporation Deposit Insurance Agency (

According to the financial statements, as of 1 February 2017, PJSC Tatfondbank ranked 42nd by assets in the Russian banking system.

03 March 2017

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