OREANDA-NEWS. By its Order No. OD-3443, dated 10 October 2016, the Bank of Russia revoked a banking licence of the Cherkessk-based credit institution Commercial Bank Razvitie, limited liability company, or LLC CB Razvitie (Registration No. 2729) from 10 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 the federal banking laws and the Bank of Russia regulations, equity capital adequacy ratios below two per cent, considering repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

LLC CB Razvitie implemented high-risk lending policy connected with placement of funds into low-quality assets. Equity capital adequacy was down to critical. Management and owners of the credit institution did not take any efficient measures to bring its activities back to normal. Under these 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’.

According to reporting data, as of 1 September 2016, LLC CB Razvitie ranked 238th in terms of assets in the Russian banking system.