On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2048, dated 8 August 2014, the Bank of Russia revoked the banking licence of the Belgorod-based credit institution open joint-stock company Northern Investment Bank for Economic Development or OJSC Severinvestbank (Registration No. 2264) from 8 August 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, repeated violations within a year of the 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 Severinvestbank implemented high-risk lending policy and did not create loan loss provisions adequate to risks assumed. Besides, OJSC Severinvestbank did not comply with the requirements of the legislation on anti-money laundering and the financing of terrorism in terms of appropriate identification of its customers.
The credit institution was actively involved in large-scale dubious operations. The management and owners of the credit institution have not taken measures required to normalise its activity.
By its Order No. OD-2049, dated 8 August 2014, the Bank of Russia has appointed a provisional administration to OJSC Severinvestbank 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 Severinvestbank 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 July 2014, OJSC Severinvestbank ranked 730th by assets in the Russian banking system.
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08.08.2014 00.00.00