On the revocation of banking licence and appointment of provisional administration

By Order No. OD-408, dated 26 March 2014, the Bank of Russia revoked the banking licence of the Ufa-based credit institution Moi Bank. Ipoteka, an open joint-stock company (OJSC Moi Bank. Ipoteka) (Registration Number: 2436) from 26 March 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. The capital adequacy ratio of this credit institution is below 2%, while its equity capital has dropped down below the minimum authorised capital established by the Bank of Russia as of the day of the state registration of the credit institution. Moreover, OJSC Moi Bank. Ipoteka is unable to satisfy creditors’ claims on its pecuniary liabilities. While making this decision the Bank of Russia also took into account the repeated application to this bank of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ over the past year. In compliance with Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia has performed its duty to revoke the banking licence of OJSC Moi Bank. Ipoteka.

The credit institution failed to make settlements on customer accounts on time. That is why in order to protect the interests of the bank’s creditors and depositors the Bank of Russia issued Order No. OD-142, dated 11 February 2014, assigning the state corporation Deposit Insurance Agency (DIA) the function of a provisional administration of OJSC Moi Bank. Ipoteka.

In compliance with the approved bankruptcy-prevention plan and based on Article 9 of Federal Law No. 175-FZ ‘On Additional Measures to Strengthen the Stability of the Banking System until 31 December 2011’, the property and liabilities to depositors of OJSC Moi Bank. Ipoteka were transferred to JSC Bank Rossiyskiy Kredit. These measures helped restore within the shortest possible timeframe the servicing of customers of OJSC Moi Bank. Ipoteka, the liabilities to whom were transferred, in the places of the bank’s location or in the same settlements.

The provisional administration analysed the financial standing of OJSC Moi Bank. Ipoteka and revealed that the bank had lost its equity capital and that it was impossible to recover its solvency. Taking into account the above reasons for the revocation of the banking licence of OJSC Moi Bank. Ipoteka, further implementation of the measures stipulated by Federal Law No. 175-FZ was deemed inexpedient.

In pursuance of Bank of Russia Order No. OD-410, dated 26 March 2014, a provisional administration has been appointed to OJSC Moi Bank. Ipoteka 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’. The DIA has terminated its function of a provisional administration. In compliance with federal laws the powers of the credit institution’s executive bodies have been suspended.

The reference to the Press Service is mandatory if you intend to use this material.

26.03.2014 00.00.00