On revocation of banking licence of credit institution NZBank and appointment of provisional administration
By its Order No.OD-4010, dated 18 November 2016, the Bank of Russia revoked the banking licence of the credit institution JOINT-STOCK COMMERCIAL BANK NATIONAL MORTGAGE BANK OPEN JOINT-STOCK COMPANY or JSCB NZBank (Registration No. 2944, the town of Dolgoprudny, the Moscow Region) from 18 November 2016.
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 violation within a year of the requirements of Article 7 (with the exception of Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, as well as requirements of Bank of Russia regulations issued in accordance with the said federal law, capital adequacy ratios being below 2 percent, decrease in capital below the minimal value of the authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, and the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
Given unsatisfactory quality of its assets, JSCB NZ Bank inadequately assessed the risks assumed. A proper assessment of the credit risk and unbiased asset value reporting resulted in a complete loss of its capital. Besides, the bank did not comply with legislation requirements and Bank of Russia regulations as regards the countering legalisation (laundering) of criminally obtained incomes and the financing of terrorism in terms of submitting adequate information to the authorised body. The bank’s internal control rules as regards the legalisation (laundering) of criminally obtained incomes and the financing of terrorism did not comply with the Bank of Russia regulations either.
By its Order No. OD-4011, dated 18 November 2016, the Bank of Russia appointed a provisional administration to JSCB NZBank (OJSC) 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.
JSCB NZBank (OJSC) 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 reporting data, as of 1 November 2016, JSCB NZBank (OJSC) ranked 375th in the Russian banking system in terms of assets.
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18.11.2016 00.00.00