On the revocation of banking licence and appointment of provisional administration

By Order No. OD-1155, dated 26 May 2014, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank Kutuzovsky, limited liability company, or CB Kutuzovsky LLC (Registration No. 3190) from 26 May 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, inability to satisfy its creditors’ claims on monetary liabilitiesand 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)’.

CB Kutuzovsky LLC implemented high-risk lending policy and did not create loan loss provisions adequate to accepted risks. Due to loss of its financial solvency, the credit institution failed to timely honour its liabilities to creditors. The management and owners of CB Kutuzovsky LLC have not taken measures required to normalise its activities and recover its financial status. Under the circumstances the Bank of Russia executed its obligation on revocation of the banking licence from CB Kutuzovsky LLC under Article 20 of the Federal Law ‘On Banks and Banking Activities’.

By its Order No. OD-1156, dated 26 May 2014, the Bank of Russia has appointed a provisional administration to CB Kutuzovsky 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.

As of 1 May 2014, CB Kutuzovsky LLC was ranked 804th by assets in the Russian banking system.

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26.05.2014 00.00.00