On revocation of banking licence of credit institution MIP BANK and appointment of provisional administration

By its Order No. OD-4614, dated 19 December 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Joint-Stock Commercial Bank MIP BANK (Joint-Stock Company), or JSCB MIP BANK (JSC) (Registration No. 3089) from 19 December 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 and the repeated application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ over the year, and taking into account the real threat to the interests of creditors and depositors.

JSCB MIP BANK (JSC) placed funds in low quality assets and did not create provisions adequate to the risks assumed. Moreover, the credit institution was involved in dubious operations. The management and owners of the bank did not take effective and sufficient measures to bring its activities back to normal and under such circumstances the Bank of Russia decided to remove JSCB MIP BANK (JSC) from the banking market.

By its Order No. OD-4615, dated 19 December 2016, the Bank of Russia appointed a provisional administration to JSCB MIP BANK (JSC) for the period until the appointment of a receiver pursuant to the Federal Law ‘On 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 MIP 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. 177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by law. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than 1.4 million rubles per depositor.

According to the financial statements, as of 1 December 2016, JSCB MIP BANK (JSC) ranked 381^st by assets in the Russian banking system

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19.12.2016 00.00.00