On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2373, dated 8 September 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Profit Bank, limited liability company, or CB Profit Bank LLC (Registration No. 3234) from 8 September 2015.
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 and application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
CB Profit Bank LLC implemented high-risk lending policy and failed to create loss provisions adequate to the risks assumed. Meeting the supervisor’s requirements on creating provisions adequate to the risks assumed by the bank resulted in a loss of most of its equity capital, and accordingly grounds for implementing insolvency (bankruptcy) prevention measures. Besides, the credit institutions failed to timely meet its obligations to creditors and did not comply with restrictions on certain operations imposed by the supervisor. The management and owners of the credit institution did not take measures to normalise its activities.
By its Order No. OD-2374, dated 8 September 2015, the Bank of Russia has appointed a provisional administration to CB Profit Bank LLC 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 federal laws, the powers of the credit institution’s executive bodies are suspended.
According to the financial statements, as of 1 August 2015, CB Profit Bank LLC ranked 631st by assets in the Russian banking system.
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08.09.2015 00.00.00