On revocation of banking licence and appointment of provisional administration
By its Order No. OD-3160, dated 11 November 2014, the Bank of Russia revoked the banking licence from the Ufa-based credit institution open joint-stock company Payment Service Bank or OJSC Bank PSB (Registration No. 1943) from 11 November 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the failure of the credit institution to comply with federal banking laws and Bank of Russia regulations, inability to meet creditors’ claims on monetary liabilities, and the application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
OJSC Bank PSB implemented high-risk lending policy connected with the placement of funds into low-quality assets, and did not created provisions adequate to accepted risks. Due to the unsatisfactory quality of assets not generating sufficient cash flows, the credit institution failed to timely honour its liabilities to creditors. The management and owners of the bank did not take measures to normalise its activities and recover its financial status. Under 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 Bank PSB.
By its Order No. OD-3161, dated 11 November 2014, the Bank of Russia has appointed a provisional administration to OJSC Bank PSB 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 Bank PSB is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.
According to the financial statements, as of 1 October 2014, OJSC Bank PSB ranked 703rd by assets in the Russian banking system.
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