OREANDA-NEWS. By its Order No. OD-1396, dated 19 June 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Joint-stock Commercial Bank AZIMUT (Registration No. 3154) from 19 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 due to the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

Joint-stock Commercial Bank AZIMUT implemented high-risk lending policy and did not create adequate loan loss provisions commensurate with risks assumed. Besides, the credit institution was involved in dubious payable-through operations. The management and owners of the bank did not take efficient measures required to counter anti-money laundering and combatting the financing of terrorism.

By its Order No. OD-1397, dated 19 June 2015, the Bank of Russia has appointed a provisional administration to Joint-stock Commercial Bank AZIMUT 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.

Joint-stock Commercial Bank AZIMUT 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, Joint-stock Commercial Bank AZIMUT ranked 648th by assets in the Russian banking system.