Bank of Russia appoints DIA as provisional administration to manage CB Sputnik (PJSC) and imposes moratorium on its creditors’ claims
By its Order No. OD-1894, dated 9 September 2021, the Bank of Russia appointed the State Corporation Deposit Insurance Agency as the provisional administration to manage Samara-based Commercial Bank Sputnik (public joint-stock company) (Registration No. 1071) beginning from 10 September 2021 for six months. The credit institution ranks 292nd by assets in the Russian banking system.
The Bank of Russia made this decision based on the facts that CB Sputnik (PJSC):
- violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied supervisory measures against it over the last 12 months, including restrictions on a number of banking operations;
- understated the credit risk level and overstated the book value of its assets; according to the findings of the appropriate assessment, the credit institution’s capital decreased below the amount required for banks with a basic licence, which is evidence of signs of financial instability;
- is involved in dubious foreign exchange transactions.
The above facts and the failure of the credit institution’s owners and executives to take effective actions stabilising the bank’s financial standing, as well as the bank’s financial instability identified by the Bank of Russia based on a set of management quality indicators are the reasons why the operations of CB Sputnik (PJSC) create a real threat to the interests of its creditors (depositors).
The Bank of Russia suspended the powers of the shareholders of CB Sputnik (PJSC) related to their equity stakes, as well as the authority of its management bodies for the period of the provisional administration’s activity.
Simultaneously, by its Order No. OD-1895, dated 9 September, in accordance with Federal Law No.
CB Sputnik (PJSC) is the only credit institution in the Russian Federation having correspondent relations with the Foreign Trade Bank of the Democratic People’s Republic of Korea in the Russian Federation within the implementation of the UN Resolution 2270 (2016) for the purpose of processing UN entities’ transactions for the DPRK.
The decisions made by the Bank of Russia in relation to CB Sputnik (PJSC) are aimed at protecting the interests of the bank’s creditors (depositors) and will ensure complete control in the credit institution and the protection of its assets.
CB Sputnik (PJSC) is a member of the deposit insurance system. The moratorium on the claims of the bank’s creditors imposed by the Bank of Russia is an insured event provided for by Federal Law No.
Depositors may obtain detailed information regarding repayments 24/7 at the Agency’s hotline
1 Depositor — a citizen of the Russian Federation, foreign citizen or person without citizenship, including those engaged in entrepreneurial activity, or a legal entity specified in Article 5.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’ which concluded a bank deposit/account agreement with a bank, or any of the above mentioned persons in whose favour the deposit was made and (or) who is the holder of a savings certificate, or an owner of a special account (special deposit) intended to form and use the fund of capital repairs of common property in an apartment house opened in accordance with the requirements of the Housing Code of the Russian Federation.
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10.09.2021 00.00.00