On revocation of banking licence and appointment of provisional administration
By Order No. OD-1659, dated 7 July 2014, the Bank of Russia revoked the banking licence of the Saint Petersburg-based credit institution open joint-stock company EUROSIB BANK or OJSC EUROSIB BANK (Registration No. 594) from 7 July 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, ascertainment of significant corruption of the reported data, repeated violations within a year of requirements of Article 7 (except for Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ 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)’.
OJSC EUROSIB BANK implemented high-risk lending policy and did not create loan loss provisions adequate to risks assumed. Besides, the credit institution failed to meet the requirements of the supervisory authority on reliable disclosure of its financial position in its accounting and statements. Due to this fact, the reports the bank submitted to the Bank of Russia were significantly corrupted. Besides, the bank did not comply with the requirements of the legislation on anti-money laundering and the financing of terrorism in terms of timely notification of the authorised body of operations subject to obligatory control and appropriate identification of its clients. The management and owners of the credit institution failed to take measures required to normalise its activities.
By its Order No. OD-1660, dated 7 July 2014, the Bank of Russia has appointed a provisional administration to OJSC EUROSIB BANK 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.
OJSC EUROSIB BANK 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, OJSC EUROSIB BANK ranked 652nd by assets in the Russian banking system.
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07.07.2014 00.00.00