On revocation of banking licence of credit institution Trade City Bank and appointment of provisional administration
By its Order No. OD-626, dated 13 March 2017, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Trade City Bank Joint stock company, Trade City Bank JSC (Registration No. 3180, the city of Moscow) from 13 March 2017.
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 one year of the requirements stipulated by Articles 6, 7 (excluding Clause 3 Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, taking into account the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, and considering the existence of a serious threat to creditors’ interests.
Trade City Bank JSC implemented high-risk lending policy connected with the placement of funds into low-quality assets. Adequate assessment of risks assumed created grounds for initiating measures to prevent insolvency (bankruptcy). The credit institution failed to timely honour its obligations to creditors. The bank did not comply with the requirements of legislation on anti-money laundering and combatting the financing of terrorism in respect of submitting to the authorised body data on operations subject to obligatory control. The management and owners of Trade City Bank JSC have not taken measures required to normalise its activities. Under these circumstances, the Bank of Russia decided to take out this credit institution from the banking services market.
By its Order No. OD-627, dated 13 March 2017, the Bank of Russia has appointed a provisional administration to Trade City Bank JSC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the 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.
Trade City Bank JSC is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
According to the financial statements, as of 1 February 2017, Trade City Bank JSC ranked 231st by assets in the Russian banking system.
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