On revocation of banking licence of credit institution FORUS Bank and appointment of provisional administration
By its Order No. OD-4618, dated 19 December 2016, the Bank of Russia revoked the banking licence from the Nizhny Novgorod-based credit institution Joint-Stock company Fora — Opportunity Russian Bank or JSC FORUS Bank (Registration No. 3457) 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, decrease in bank equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution and considering repeated application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
JSC FORUS Bank had low quality assets and inadequately assessed the loan portfolio and risks assumed. As a result of complying with the requirements of the supervisory body regarding creation of adequate provisions, the bank has lost a significant part of its equity capital. The management and owners of the bank did not take effective measures to bring its activities back to normal and under such circumstances, in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked its banking licence.
By its Order No. OD-4619, dated 19 December 2016, the Bank of Russia appointed a provisional administration to JSC FORUS Bank 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.
JSC FORUS Bank 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 December 2016, JSC FORUS Bank ranked 374th by assets in the Russian banking system.
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19.12.2016 00.00.00