OREANDA-NEWS. By Order No. OD-615, dated 24 March 2015, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Congress-Bank, open joint-stock company (Congress-Bank OJSC) (Registration Number: 2330) from 24 March 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. The bank was also subject to measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)' and failed to reach as of 1 January 2015 the minimum amount of its equity capital stipulated by Part 7 of Article 112 of the Federal Law 'On Banks and Banking Activities' and did not submit to the Bank of Russia an application to change its status to that of a non-bank credit institution.

Congress-Bank OJSC violated banking legislation and Bank of Russia regulations by underestimating credit risk and making loan loss provisions in the amount inadequate to the level of risks assumed. The management and owners of the credit institution failed to take measures to increase the bank's equity capital to the amount of 300 million rubles as envisaged by the federal law and did not take a decision to change the bank's status to that of a non-bank credit institution. In compliance with Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia has performed its duty to revoke the banking licence of Congress-Bank OJSC.

In pursuance of Bank of Russia Order No. OD-616, dated 24 March 2015, a provisional administration has been appointed to Congress-Bank OJSC for a term until the appointment of a receiver in accordance with the Federal Law 'On the Insolvency (Bankruptcy) of Credit Institutions' or a liquidator in accordance with Article 23.1 of the Federal Law 'On Banks and Banking Activities'. In compliance with federal laws the powers of the credit institution's executive bodies have been suspended.

According to reporting data, as of 1 March 2015 Congress-Bank OJSC ranked 800th in the Russian banking system in terms of assets.