On revocation of banking licence of credit institution RFA and appointment of provisional administration
By its Order No. OD-4402, dated 9 December 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Public Joint-Stock Company Joint-Stock Commercial Bank Russian Financial Alliance, or PJSC JSCB RFA (Registration No. 2035) from 9 December 2016.
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, unreliable financial statements, failure to satisfy creditors’ claims on financial liabilities and the repeated application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ over the year.
Due to the low quality of assets, which did not create sufficient capital flow, PJSC JSCB RFA failed to timely satisfy its liabilities to creditors. PJSC JSCB RFA ignored the order of supervisory authority to submit to the Bank of Russia reliable financial statements reflecting its actual financial standing. Management and owners of the bank did not take effective measures to bring its activities back to normal and under such circumstances, in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia performed its duty and revoked the banking licence.
By its Order No. OD-4403, dated 9 December 2016, the Bank of Russia appointed a provisional administration to PJSC JSCB RFA 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 November 2016, CB International Bank of Development (JSC) ranked 545th by assets in the Russian banking system.
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