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

By its Order No. OD-550, dated 3 March 2017, the Bank of Russia revoked the banking licence of the Kazan-based credit institution Joint Stock Company ANKOR BANK OF SAVINGS or ANKOR BANK JSC (Registration No. 889) 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, its inability to satisfy creditors’ claims, 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)’.

ANKOR BANK JSC placed funds in low-quality assets and failed to make provisions adequate to the risks assumed. The credit institution could not fulfill its obligations to creditors on time due to the poor quality of assets, which failed to generate sufficient cash flow.

The management and owners of ANKOR BANK JSC failed to take effective measures to bring the situation back to normal and recover its financial position. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of ANKOR BANK JSC in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.

By its Order No. OD-551, dated 3 March 2017, the Bank of Russia has appointed a provisional administration to ANKOR BANK JSC 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 the federal laws, the powers of the credit institution’s executive bodies have been suspended.

ANKOR BANK JSC 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 law. The said Federal Law provides for the payment of benefits to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than 1.4 million rubles per one depositor.

According to reporting data, as of 1 February 2017, ANKOR BANK JSC ranked 233^rd in the Russian banking system in terms of assets.

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