OREANDA-NEWS. By its Order No. OD-1105, dated 20 May 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Transportny, limited liability company, of CB Transportny LLC (Registration No. 3174) from 20 May 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 application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

CB Transportny LLC implemented high-risk lending policy connected with placement of funds into low-quality assets. As a result of creating provisions adequate to the risks assumed, the credit institution lost its equity capital.

Besides, during 2014 the credit institution was involved in large scale dubious operations.

The management and owners of the credit institution did not take measures to normalise its activities. Due to the poor quality of assets of the credit institution, it was impossible to perform financial rehabilitation of CB Transportny LLC with the participation of the state corporation Deposit Insurance Agency on reasonable economic terms. 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 the credit institution.

By its Order No. OD-1106, dated 20 May 2015, the Bank of Russia has appointed a provisional administration to CB Transportny LLC 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.

CB Transportny LLC 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 May 2015, CB Transportny LLC ranked 103rdby assets in the Russian banking system.