On revocation of banking licence and appointment of provisional administration
By its Order No. OD-3301, dated 26 November 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution closed joint-stock company BVA-Bank or CJSC BVA-Bank (Registration No. 1684) 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 and application over the past year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
CJSC BVA-Bank implemented high-risk lending policy connected with placement of funds into low-quality assets. 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, during 2013 and 2014, the credit institution was involved in dubious operations connected with overseas money transfer in significant amounts. The management and owners of the bank did not take measures to normalise its activities.
By its Order No. OD-3302, dated 26 November 2014, the Bank of Russia has appointed a provisional administration to CJSC BVA-Bank 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.
CJSC BVA-Bank 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, CJSC BVA-Bank ranked 765th by assets in the Russian banking system.
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26.11.2014 00.00.00