On revocation of banking licence and appointment of provisional administration
OREANDA-NEWS. By its Order No. OD-187, dated 29 January 2015 the Bank of Russia revoked the banking licence from the Ust-Kut-based credit institution joint-stock company Your Personal Bank or JSC VLBANK (Registration No. 1222, the Irkutsk Region) from 29 January 2015.
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 meet creditors’ claims on monetary obligations, and application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
JSC VLBANK implemented high-risk lending policy connected with placement of funds into low-quality assets. Due to the low quality of assets not generating sufficient cash flows, the bank failed to timely honour its liabilities to creditors and depositors. The management and owners of JSC VLBANK did not take measures to normalise its activities and recover its financial status. In these circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked the banking licence from JSC VLBANK.
By its Order No. OD-188, dated 29 January 2015, the Bank of Russia has appointed a provisional administration to JSC VLBANK for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy)’ 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.
JSC VLBANK is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.
According to the financial statements, as of 1 January 2015, JSC VLBANK ranked 504th by assets in the Russian banking system.
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