OREANDA-NEWS. By its Order No. OD-3983, dated 16 November 2016, the Bank of Russia revoked the banking licence from the credit institution Commercial Bank Express-credit (stock company) (Registration No. 210, the city of Moscow) from 16 November 2016.

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, because the capital adequacy ratio of this credit institution was below 2% and its equity capital dropped below the minimum authorised capital value established by the Bank of Russia as of the date of the state registration of the credit institution, and taking into account the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Commercial Bank Express-credit (stock company) failed to adequately assess the risks assumed as the quality of assets was bad. The competent assessment of credit risk at the supervisor’s request revealed a full loss of the bank’s equity capital. The credit institution was involved in dubious payable-through operations.

The management and owners of Commercial Bank Express-credit (stock company) did not take proper action to bring its activities back to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.

By its Order No. OD-3984, dated 16 November 2016, the Bank of Russia has appointed a provisional administration to Commercial Bank Express-credit (stock company) for the period until the appointment of a receiver pursuant or a liquidator. In accordance with federal laws, the powers of the credit institution’s executive bodies are suspended.

According to the financial statements, as of 1 November 2016, Commercial Bank Express-credit (stock company) ranked 303rd by assets in the Russian banking system.