On the revocation of banking licence and appointment of provisional administration
By Order No. OD—766, dated 21 April 2014, the Bank of Russia revoked the banking licence of the Moscow-based Open Joint-Stock Company “Bank Zapandy” (OJSC Bank Zapandy) (Registration No. 2598) from 21 April 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of OJSC Bank Zapadny’s failure to comply with federal banking laws and Bank of Russia regulations, because of the established facts of gross misreporting of data, and also taking into account the repeated application over the past year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
As part of its supervision over OJSC Bank Zapandy’s activities, the Bank of Russia revealed facts of gross misreporting of data by this bank. The bank implemented high-risk lending policy connected with the placement of funds into low-quality assets. An adequate assessment of the risks assumed and correct reporting of the bank’s assets lead to the loss of its equity capital in full. At the same time, OJSC Bank Zapandy has failed to fulfill the supervisor’s requirement to make loss provisions. The management and owners of the credit institution failed to take measures on its financial rehabilitation.
In pursuance of Bank of Russia Order No. OD—767, dated 21 April 2014, a provisional administration has been appointed to OJSC Bank Zapandy for a term until the appointment of a receiver in accordance with the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ or a liquidator in accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In compliance with federal laws the powers of the credit institution’s executive bodies have been suspended.
OJSC Bank Zapandy is a participant in the deposit insurance system. The revocation of the banking licence is recognised as an insured event stipulated by Federal Law No. 177‑FZ ‘On the Insurance of Household Deposits in Russian Banks’ with regard to the bank’s obligations to honour household deposits identified in accordance with the procedure established by law.
As of 1 April 2014, OJSC Bank Zapandy ranked 142nd in the Russian banking system in terms of assets.
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21.04.2014 00.00.00