On revocation of banking licence and appointment of provisional administration
By its Order No. OD-3455, dated 10 December 2014, the Bank of Russia revoked the banking licence from the Buzuluk-based credit institution open joint-stock company Investment Bank Buzulukbank or OJSC Investbank BZL (Registration No. 1282, the Orenburg Region) from 10 December 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’, inability to meet the creditors’ claims on monetary obligations and application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
The bank implemented high-risk lending policy connected with placement of funds into low-quality assets. Due to the loss of liquidity, OJSC Investbank BZL failed to timely honour its liabilities to creditors and depositors. The management and owners of the bank did not take measures to normalise its activities and recover its financial status. In these circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked the banking licence from OJSC Investbank BZL.
The bank 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. Besides, OJSC Investbank BZL was involved in dubious cash transactions.
By its Order No. OD-3456, dated 10 December 2014, the Bank of Russia has appointed a provisional administration to OJSC Investbank BZL 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 Investbank BZL is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No. 177-FZ ‘On Insurance of Household Deposits with Russian Banks’ regarding the bank’s obligations on deposits of households determined in accordance with the legislation.
As of 1 November 2014, OJSC Investbank BZL ranked 737th by assets in the Russian banking system.
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10.12.2014 00.00.00