On revocation of banking licence of credit institution NEFTYANOY ALLIANCE and appointment of provisional administration
By its Order No. OD-640, dated 14 March 2017, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Public Joint-stock Commercial Bank NEFTYANOY ALLIANCE, PJSC N.A.B. (Registration No. 2859, the city of Moscow) from 14 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 Article 7 (excluding Clause 3 Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and the requirements of Bank of Russia regulations issued in compliance with the indicated Federal Law, because the capital adequacy ratio of this credit institution was below 2% and its equity capital dropped below the minimum authorised capital value established by the Bank of Russia as of the date of the state registration of the credit institution, due to the bank’s inability to meet monetary obligations to creditors, and taking into account repeated applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
PJSC N.A.B. placed funds into low-quality assets and did not create adequate provisions commensurate with risks assumed. Due to the unsatisfactory quality of assets and subsequent insufficient cash flows, the credit institution failed to timely honour its obligations to creditors. An adequate assessment of the credit risk revealed a full loss of capital by the bank. Besides, PJSC N.A.B. did not comply with the requirements of legislation and Bank of Russia regulations on anti-money laundering and combatting the financing of terrorism in respect of submitting to the authorised body reliable data on a timely basis.
The management and owners of the bank did not take measures required to normalise its activities. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
By its Order No. OD-641, dated 14 March 2017, the Bank of Russia has appointed a provisional administration to PJSC N.A.B. 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.
PJSC N.A.B. 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, PJSC N.A.B. ranked 217st by assets in the Russian banking system.
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