OREANDA-NEWS. By its Order No. OD-3673, dated 27 October 2016, the Bank of Russia revoked the banking licence from the Krasnodar-based credit institution Commercial Bank Kuban Universal Bank, limited liability company, or CB Kuban Universal Bank LLC (Registration No. 2898) from 27 October 2016.

The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, and application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, considering a real threat to the bank’s creditors and depositors.

CB Kuban Universal Bank LLC invested funds in low-quality assets and did not create loss provisions adequate to the risks assumed. Adequate assessment of the risks assumed as required by the supervisor and fair presentation of the bank’s assets resulted in the reasons for implementing insolvency (bankruptcy) prevention measures by the credit institution. The bank management and owners did not take required measures to normalise its activities. Under the circumstances the Bank of Russia took a decision to take out CB Kuban Universal Bank LLC from the banking services market.

CB Kuban Universal Bank LLC is a member of the deposit insurance system. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than 1.4 million rubles per depositor.

According to the financial statements, as of 1 October 2016, CB Kuban Universal Bank LLC ranked 377th by assets in the banking system of the Russian Federation.