OREANDA-NEWS. By its Order No. OD-1797, dated 8 June 2016, the Bank of Russia revoked the banking licence from the credit institution Financial Standard Commercial Bank Limited or Financial Standard Bank (Registration No. 1053, the city of Moscow) from 8 June 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, due to the fact that the values of all capital adequacy ratios of the bank are below two percent, because of decrease in the bank capital below the minimum amount of the authorised capital established as of the date of the state registration of the credit institution, due to the bank’s inability to meet monetary obligations to creditors, and also taking into account repeated applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Financial Standard Bank placed funds into low-quality assets and did not create adequate provisions commensurate with risks assumed. Due to unsatisfactory quality of assets and subsequent insufficient cash flows, the credit institution failed to timely honour its obligations to creditors. Besides, an adequate assessment of the credit risk has revealed a full loss of capital by the bank. The credit institution was involved in dubious payable-through operations.

By its Order No. OD-1798, dated 8 June 2016, the Bank of Russia has appointed a provisional administration to Financial Standard Bank 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 May 2016, Financial Standard Bank ranked 218th by assets in the Russian banking system.