On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2578, dated 22 September 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank The First Depositary Bank, limited liability company, or CB The First Depositary Bank LLC (Registration No. 1244) from 22 September 2014.
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 taking into account the application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
CB The First Depositary Bank LLC implemented high-risk lending policy and did not create loan loss provisions adequate to risks assumed. The rules of internal controls of the bank did not comply with Bank of Russia requirements in the field of anti-money laundering and the financing of terrorism. Besides, the credit institution was involved in dubious cash operations. The management and owners of the bank did not take measures required to normalise its activities.
Pursuant to its Order No. OD-2579, dated 22 September 2014, the Bank of Russia has appointed a provisional administration to CB The First Depositary Bank LLC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ 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.
CB The First Depositary Bank LLC is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.
According to the financial statements, as of 1 September 2014, CB The First Depositary Bank LLC ranked 822ndby assets in the Russian banking system.
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22.09.2014 00.00.00