On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2250, dated 28 August 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Interindustry Banking Corporation, limited liability company, or CB IBC LLC (Registration No. 3471) from 28 August 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 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 IBC LLC implemented high-risk lending policy and did not create loan loss provisions adequate to risks assumed. Besides, during 2013 and during the first six months of 2014 the credit institution was involved in dubious operations connected with overseas money transfers by its customers in significant amounts. The management and owners of the credit institution have not taken measures required to normalise its activities.
Pursuant to its Order No. OD-2251, dated 28 August 2014, the Bank of Russia has appointed a provisional administration to CB IBC 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.
According to the financial statements, as of 1 August 2014, CB IBC LLC ranked 649thby assets in the Russian banking system.
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28.08.2014 00.00.00