OREANDA-NEWS. By its Order No. OD-1208, dated 1 June 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank OPM-Bank (limited liability company) or CB OPM-Bank Ltd (Registration No. 2734) from 1 June 2015.

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, to the establishment of instances of material unreliability of financial statements, and taking into account the repeated application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

The bank implemented high-risk lending policy connected with the placement of funds into low-quality assets. Adequate assessment of risks assumed and true reflection of the bank's assets value lead to a total loss of its capital. At the same time, CB OPM-Bank Ltd did not comply with the supervisor's requirement to create needed loss provisions, to submit statements reflecting the bank's real financial standing and existence of grounds for the revocation of the banking licence stipulated by Part 2 Article 20 of the Federal Law 'On Banks and Banking Activities'.

The management and owners of the bank did not take effective measures to normalise its activities. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from CB OPM-Bank Ltd in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.

By its Order No. OD-1209, dated 1 June 2015, the Bank of Russia has appointed a provisional administration to CB OPM-Bank Ltd 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 OPM-Bank Ltd is a participant of the deposit insurance system. The revocation of a 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 households deposits determined in accordance with legislation.

According to its financial statements, as of 1 May 2015, CB OPM-Bank Ltd ranked 257th by assets in the Russian banking system.