On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2649, dated 30 September 2014, the Bank of Russia revoked the banking licence from the Samara-based credit institution OPEN JOINT-STOCK COMPANY PRIORITET BANK or OJSC PRIORITET BANK (Registration No. 3135) from 30 September 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 liabilities and application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
OJSC PRIORITET BANK did not create provisions adequate to the risks assumed. Due to the loss of liquidity, the credit institution failed to timely honour its liabilities to creditors. The management and owners of OJSC PRIORITET BANK 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 OJSC PRIORITET BANK.
By its Order No. OD-2650, dated 30 September 2014, the Bank of Russia has appointed a provisional administration to OJSC PRIORITET 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.
OJSC PRIORITET 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 September 2014, OJSC PRIORITET BANK ranked 522nd by assets in the Russian banking system.
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30.09.2014 00.00.00