On revocation of banking licence of credit institution BANK RCB and appointment of provisional administration

By its Order No. OD-3139, dated 19 September 2016, the Bank of Russia revoked a banking licence of the credit institution Regional Commercial Bank, joint-stock company, or JSC BANK RCB (Registration No. 836, the Ulyanovsk Region, the town of Dimitrovgrad) from 19 September 2016.

The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of requirements, stipulated in Article 7, except for clause 3, Article 7, of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, considering a real threat to the creditors’ and depositors’ interests.

JSC BANK RCB did not comply with the legislative requirements as regards countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in terms of submitting true and full information on operations subject to mandatory control to the authorised body. Besides, the internal control rules of the credit institution in this field did not meet the Bank of Russia requirements. Given unsatisfactory quality of assets, JSC BANK RCB inadequately assessed the credit risks assumed. Management and owners of the credit institution did not take any effective measures to bring its activities back to normal.

By its Order No. OD-3140, dated 19 September 2016, the Bank of Russia has appointed a provisional administration to JSC BANK RCB 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.

JSC BANK RCB 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 legislation. 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 not more than 1.4 million rubles per depositor.

According to reporting data, as of 1 September 2016, JSC BANK RCB ranked 404^th in terms of assets in the Russian banking system.

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