OREANDA-NEWS. By its Order No. OD-2780, dated 9 October 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution open joint-stock company Bank Narodniy Credit or OJSC Bank Narodniy Credit (Registration No. 2401) from 9 October 2014.

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, capital adequacy ratio below 2 percent, decrease in own funds (capital) below the minimal value of authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, inability to meet creditors' claims on monetary obligations, and the application within a year of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

The credit institution failed to timely provide settlements on customer accounts, due to which, in order to protect depositors' and creditors' interests the Bank of Russia appointed by its order the state corporation Deposit Insurance Agency to perform the functions of the provisional administration of OJSC Bank Narodniy Credit from 1 October 2014, whose powers have been terminated.

The examination of financial standing of OJSC Bank Narodniy Credit conducted by the provisional administration revealed complete loss of the bank's own funds and impossibility to restore its creditworthiness. Taking into account the aforementioned reasons to revoke the banking licence from OJSC Bank Narodniy Credit, further implementation of measures stipulated by the Federal Law 'On the Additional Measures to Strengthen Stability of the Banking System until 31 December 2014' is considered inexpedient.

By its Order No. OD-2782, dated 9 October 2014, the Bank of Russia has appointed a provisional administration to OJSC Bank Narodniy Credit for the period until the appointment of a receiver pursuant to the Federal Law 'On the Insolvency (Bankruptcy) of Credit Institutions' or a liquidator under Article 23.1 of the Federal Law 'On Banks and Banking Activities'. The performance of functions of the provisional administration of OJSC Bank Narodniy Credit by the Agency is terminated. In accordance with federal laws, the powers of the credit institution's executive bodies are suspended.

OJSC Bank Narodniy Credit is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No. 177-FZ 'On Insurance of Household Deposits with Russian Banks' regarding the bank's liabilities on deposits of households determined in accordance with the legislation.

As of 1 September 2014, OJSC Bank Narodniy Credit ranked 112th by assets in the Russian banking system.