OREANDA-NEWS. By its Order No. OD-783, dated 13 April 2015, the Bank of Russia revoked the banking licence from the Yuzhno-Sakhalinsk-based credit institution open joint-stock company Tikhookeanskiy Vneshtorgbank or OJSC Tikhookeanskiy Vneshtorgbank (Registration No. 1378) from 13 April 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, capital adequacy below 2%, decrease in equity capital below the minimal amount of the authoruised capital established as of the date of the state registration of the credit institution, and taking into account the application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

OJSC Tikhookeanskiy Vneshtorgbank implemented high-risk policy connected, inter alia, with lending to the bank's principal owner. As a result of meeting the supervisor's requirements on creating provisions adequate to the risks assumed, the credit institution lost its equity capital.

Besides, during 2014, the credit institution was involved in dubious operations connected with withdrawal of cash funds by legal entities from their accounts and overseas money transfer in significant amounts.

The management and owners of the credit institution did not take measures to normalise its activities. Due to the low quality of assets of the credit institution, it was impossible to perform financial resolution of OJSC Tikhookeanskiy Vneshtorgbank with the participation of the state corporation Deposit Insurance Agency on reasonable economic terms. 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'.

By its Order No. OD-784, dated 13 April 2015, the Bank of Russia has appointed a provisional administration to OJSC Tikhookeanskiy Vneshtorgbank 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.

OJSC Tikhookeanskiy Vneshtorgbank 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 obligations on deposits of households determined in accordance with the legislation.

According to the financial statements, as of 1 March 2015, OJSC Tikhookeanskiy Vneshtorgbank ranked 340th by assets in the Russian banking system.