OREANDA-NEWS. By its Order No. OD-1293, dated 10 June 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution joint-stock company Republican Social Commercial Bank or JSC BANK RSCB (Registration No. 2050) from 10 June 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, and taking into account the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

JSC BANK RSCB 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 created grounds for the credit institutions' initiating measures to prevent insolvency (bankruptcy). Besides, due to unsatisfactory quality of assets and subsequent insufficient cash flows, the credit institution failed to timely honour its obligations to creditors.

By its Order No. OD-1294, dated 10 June 2015, the Bank of Russia has appointed a provisional administration to JSC BANK RSCB 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 BANK RSCB is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No. 177-FZ'On the Insurance of Household Deposits with Russian Banks' in respect of the bank's retail deposit obligations, as defined by law.

As of 1 June 2015, JSC BANK RSCB was ranked 439th by assets in the Russian banking system.