On revocation of banking licence and appointment of provisional administration
By its Order No. OD-3162, dated 11 November 2014, the Bank of Russia revoked the banking licence from the Ulyanovsk-based credit institution open joint-stock company Gubernsky Bank Simbirsk or OJSC GB Simbirsk (Registration No. 653) from 11 November 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, application within a year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, and taking into account the real threat to creditors’ and depositors’ interests.
OJSC GB Simbirsk implemented high-risk lending policy and did not create loan loss provisions adequate to accepted risks. Due to the unsatisfactory quality of assets not generating sufficient cash flows, the credit institution regularly failed to timely honour its liabilities to creditors and depositors starting this October. The management and owners of the bank did not take measures to normalise its activities.
By its Order No. OD-3163, dated 11 November 2014, the Bank of Russia has appointed a provisional administration to OJSC GB Simbirsk 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 GB Simbirsk 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 GB Simbirsk ranked 671st by assets in the Russian banking system.
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11.11.2014 00.00.00