On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2252, dated 28 August 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution closed joint-stock company Joint-Stock Commercial Bank Online Bank or CJSC JSCB Online Bank (Registration No. 2462) 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)’.
CJSC JSCB Online Bank АКБ implemented high-risk lending policy and did not create loan loss provisions adequate to risks assumed. Besides, the credit institution was involved in dubious operations connected with overseas money transfer in significant amounts. The management and owners of the bank have not taken measures required to normalise its activities.
Pursuant to its Order No. OD-2253, dated 28 August 2014, the Bank of Russia has appointed a provisional administration to CJSC JSCB Online 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.
According to the financial statements, as of 1 August 2014, CJSC JSCB Online Bank ranked 781stby assets in the Russian banking system.
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28.08.2014 00.00.00