On revocation of banking licence of the credit institution DS-Bank and appointment of provisional administration
By its Order No. OD-1479, dated 12 May 2016, the Bank of Russia revoked the banking licence from the credit institution Commercial Bank Dynamic Systems (Limited Liability Company) CB DS-Bank LLC (Registration No. 3439, the city of Moscow) from 12 May 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, because of the established instances of material unreliability of financial statements, taking into account the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, and considering the existence of a serious threat to creditors’ interests.
CB DS-Bank LLC implemented a high-risk lending policy by placing funds in low-quality assets. The bank did not comply with the requirements of the supervisory authority on creating loan loss provisions, submitting reliable statements reflecting its true financial standing and existence of grounds for initiating measures to prevent insolvency (bankruptcy). From early May 2016, the bank has actually terminated its operations. Besides, the credit institution was involved in dubious payable-through operations.
The management and owners of the bank have not taken measures required to normalise its activities. In these circumstances, the Bank of Russia decided to revoke the banking licence from CB DS-Bank LLC.
By its Order No. OD-1480, dated 12 May 2016, the Bank of Russia has appointed a provisional administration to CB DS-Bank LLC 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.
According to the financial statements, as of 1 April 2016, CB DS-Bank LLC ranked 531st by assets in the Russian banking system.
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