On revocation of banking licence and appointment of provisional administration
By its Order No. OD-3299, dated 26 November 2014, the Bank of Russia revoked the banking licence from the Derbent-based credit institution Commercial Bank PrestigeCreditBank, limited liability company, or CB PrestigeCreditBank LLC (Registration No. 2922, the Republic of Dagestan) from 26 November 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, capital adequacy below 2%, decrease in equity (capital) below the minimal amount of the authoruised capital established as of the date of the state registration of the credit institution, inability to meet the creditors’ claims on monetary obligations and application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
CB PrestigeCreditBank LLC implemented high-risk lending policy and placed funds into low-quality assets that resulted in complete loss of the bank’s equity (capital). Due to the loss of liquidity, the credit institution failed to timely honour its liabilities to creditors. The management and owners of CB PrestigeCreditBank LLC did not take measures to normalise its activities and recover its financial status. In these circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked the banking licence from CB PrestigeCreditBank LLC.
CB PrestigeCreditBank LLC was involved in dubious cash transactions in significant amounts.
By its Order No. OD-3300, dated 26 November 2014, the Bank of Russia has appointed a provisional administration to CB PrestigeCreditBank 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 PrestigeCreditBank 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 November 2014,
CB PrestigeCreditBank LLC ranked 805th by assets in the Russian banking system.
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26.11.2014 00.00.00