On revocation of banking licence and appointment of provisional administration
By its Order No. OD-3303, dated 26 November 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution open joint-stock company Bank-T or OJSC Bank-T (Registration No. 625) 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, 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)’.
OJSC Bank-T implemented high-risk lending policy and did not create loan loss provisions adequate to accepted risks. Due to the unsatisfactory quality of assets not generating sufficient cash flows, the credit institution failed to timely honour its liabilities to creditors. The management and owners of the bank did not take measures to normalise its activities. 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 OJSC Bank-T.
By its Order No. OD-3304, dated 26 November 2014, the Bank of Russia has appointed a provisional administration to OJSC Bank-T 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.
OJSC Bank-T 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, OJSC Bank-T ranked 265th by assets in the Russian banking system.
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26.11.2014 00.00.00