OREANDA-NEWS. By its Order No. OD-3738, dated 30 December 2014, the Bank of Russia revoked the banking licence from the Samara-based credit institution Open Joint-Stock Company Commercial Volga-Credit Bank or OJSC VLCB (Registration No. 1153) from 30 December 2014.

The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, capital adequacy below 2%, a decrease in capital below the minimal amount of the authorised capital established as of the date of the state registration of the credit institution, and application of measures stipulated by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

OJSC VLCB implemented high-risk lending policy and did not form provisions adequate to the risks assumed. In addition, the credit institution accounted for unavailable securities. As a result of meeting supervisor’s requirements on creating provisions adequate to the risks assumed, OJSC VLCB lost its capital.

In mid-December 2014, OJSC VLCB entirely stopped its activities, including operations on customer accounts and depositor servicing. The management and owners of the bank did not take measures to recover its activities. In these circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia performed its duty by revoking the banking licence from OJSC VLCB.

By its Order No. OD-3739, dated 30 December 2014, the Bank of Russia has appointed a provisional administration to OJSC VLCB 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’. In accordance with federal laws, the powers of the credit institution’s executive bodies are suspended.

OJSC VLCB is a member of the deposit insurance system. The revocation of a banking licence is an insured event stipulated by Federal Law No. 177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ regarding bank’s obligations on household deposits specified by legislation.

According to financial statements, as of 1 December 2014, OJSC VLCB ranked 296th by assets in the Russian banking system.