OREANDA-NEWS. By its Order No.OD-3144, dated 19 September 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution FINPROMBANK (Public Joint-Stock Company) or JSCB FINPROMBANK (PJSC) (Registration No. 2157) from 19 September 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, inability to satisfy its creditors’ claims on monetary liabilities, 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)’.

Due to unsatisfactory quality of assets and subsequent insufficient cash flows, JSCB FINPROMBANK (PJSC) failed to timely honour its obligations to creditors. Under the circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.

By its Order No. OD-3145, dated 19 September 2016, the Bank of Russia has appointed a provisional administration to JSCB FINPROMBANK (PJSC) for the period until the appointment of a receiver pursuant to the Federal Law ‘On Insolvency (Bankruptcy)’ or a liquidator under Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In accordance with the federal laws, the powers of the credit institution’s executive bodies have been suspended.

JSCB FINPROMBANK (PJSC) is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No. 177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by law. 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 per one depositor.

According to reporting data, as of 1 September 2016, JSCB FINPROMBANK (PJSC) ranked 94th in the Russian banking system in terms of assets.