On the revocation of banking licence and appointment of provisional administration
By Order No. OD-1253, dated 2 June 2014, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Limited liability company Commercial Bank BFT or CB Bank BFT LLC (Registration No. 2273) from 2 June 2014.
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, inability to satisfy its creditors’ claims on monetary liabilities and taking into account 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)’.
The bank implemented high-risk lending policy connected with the placement of funds into low-quality assets. Due to extremely poor quality of assets and subsequent insufficient cash flows, CB Bank BFT LLC has failed to timely honour its liabilities to creditors. The management and owners of CB Bank BFT LLC have not taken measures required to normalise its activities and recover its financial status. In these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
By its Order No. OD-1254, dated 2 June 2014, the Bank of Russia has appointed a provisional administration to CB Bank BFT LLC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ 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.
CB Bank BFT LLC is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.
As of 1 May 2014, CB Bank BFT LLC was ranked 350th by assets in the Russian banking system.
The reference to the Press Service is mandatory if you intend to use this material.
02.06.2014 00.00.00