On revocation of banking licence of credit institution IntechBank and appointment of provisional administration
By its Order No. OD-546, dated 3 March 2017, the Bank of Russia revoked the banking licence of the Kazan-based credit institution Public Joint-stock Company IntechBank PJSC IntechBank (Registration No. 2705, the city of Kazan) 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, because the capital adequacy ratio of this credit institution was below 2% and its equity capital dropped below the minimum authorised capital value established by the Bank of Russia as of the date of the state registration of the credit institution, and 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)’.
PJSC IntechBank placed funds into low-quality assets and failed to adequately assess risks assumed. The creation of required additional provisions lead to a full loss of capital by the bank. The management and owners of the bank have not taken measures required to normalise its activities.
Considering the low quality of assets, it did not seem feasible to conduct the financial resolution of PJSC IntechBank with the involvement of the state corporation Deposit Insurance Agency and the bank’s creditors on reasonable economic conditions. Under 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’.
Due to the revocation of the banking licence, by its Order No. OD-547, dated 3 March 2017, the Bank of Russia terminated the activity of the provisional administration to manage PJSC IntechBank whose functions had been assigned to the state corporation Deposit Insurance Agency by Bank of Russia Order No. OD-4709, dated 23 December 2016.
By its Order No. OD-548, dated 3 March 2017, the Bank of Russia has appointed a provisional administration to PJSC IntechBank 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.
PJSC IntechBank is a member of the deposit insurance system. The insured event shall deem occurred on the same date when a moratorium on the satisfaction of PJSC IntechBank creditors’ claims was introduced (23 December 2016). This date also applies for the calculation of insurance benefits on the bank’s foreign currency liabilities.
The revocation of the banking licence prior to the expiry of the moratorium on the satisfaction of creditors’ claims shall not make void the legal implication of such moratorium, including the obligation of the state corporation Deposit Insurance Agency to pay insurance benefits to depositors.
The Agency shall continue to pay out insurance benefits on deposits (accounts) with PJSC IntechBank as stipulated by Clause 2 of Part 1 of Article 8 of the Federal Law ‘On the 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 insurance benefits is published on the website of the state corporation Deposit Insurance Agency (www.asv.org.ru).
According to the financial statements, as of 1 February 2017, PJSC IntechBank ranked 138th by assets in the Russian banking system.
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03.03.2017 00.00.00