On revocation of banking licence and appointment of provisional administration
By Order No. OD-1657, dated 7 July 2014, the Bank of Russia revoked the banking licence of the Saint Petersburg-based credit institution FININVEST BANK, a limited liability company, or FININVEST BANK LLC (Registration No. 671) from 7 July 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the failure of FININVEST BANK LLC to comply with federal banking laws and Bank of Russia regulations, ascertainment of significant corruption of the reported data 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)’.
Exercising the supervision over the activity of FININVEST BANK LLC the Bank of Russia established significant corruption of its reports. The credit institution implemented high-risk lending policy connected with the placement of funds into low-quality assets. Adequate assessment of risks assumed and reliable disclosure of the cost of the bank’s assets result in complete loss of its equity capital. FININVEST BANK LLC failed to meet the requirement of the supervisory authority on creating loss provisions and providing statements disclosing its actual financial position.
The management and owners of FININVEST BANK LLC failed to take measures required to normalise its activities and recover its financial status. Due to the poor quality of assets of the credit institution, it was impossible to perform financial rehabilitation procedures with the participation of the state corporation Deposit Insurance Agency on reasonable economic terms. Taking into account the lack of prospects for the recovery of the bank’s financial position and in order to avoid further aggravation of its condition the Bank of Russia took a decision to terminate the activity of FININVEST BANK LLC.
By its Order No. OD-1658, dated 7 July 2014, the Bank of Russia has appointed a provisional administration to FININVEST BANK 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.
FININVEST BANK 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 June 2014, FININVEST BANK LLC ranked 179th by assets in the Russian banking system.
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07.07.2014 00.00.00