OREANDA-NEWS. By its Order No. OD-4012, dated 18 November 2016, the Bank of Russia revoked the banking licence from the credit institution Commercial Bank Metropol (Limited Liability Company), or CB Metropol Ltd (Registration No. 1539, the city of Moscow) from 18 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, and the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, taking into account the real threat to the interests of creditors and depositors.

CB Metropol Ltd placed funds in low quality assets and inadequately assessed risks assumed. Following the requirement of the supervisory authority on creating loan loss provisions appropriate to the risks assumed, the activities of the credit institution repeatedly created grounds for initiating measures to prevent insolvency (bankruptcy). Moreover, CB Metropol Ltd was involved in dubious payable-through operations.

Under these circumstances, the Bank of Russia has decided to revoke the banking licence of the credit institution.

By its Order No. OD-4013, dated 18 November 2016, the Bank of Russia has appointed a provisional administration to CB Metropol Ltd for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy)’ 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 November 2016, CB Metropol Ltd ranked 377th by assets in the Russian banking system.