OREANDA-NEWS. By its Order No. OD-1774, dated 24 July 2015, the Bank of Russia revoked a banking licence from the credit institution Open Joint-Stock Company ROSSIYSKIY KREDIT BANK or OJSC ROSSIYSKIY KREDIT BANK (Registration No. 324, the city of Moscow) from 24 July 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, revealed facts of considerable unreliability of reporting data and the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)' taking into account a real threat to the creditors' and depositors' interests.

OJSC ROSSIYSKIY KREDIT BANK implemented high-risk lending policy. Besides, the bank presented to the Bank of Russia unreliable financial statements which concealed the grounds for implementing insolvency (bankruptcy) prevention measures and grounds for the Bank of Russia to cancel the banking licence. The bank failed to comply with supervisor's requirements to recognise assumed risks in its financial statements. Also, OJSC ROSSIYSKIY KREDIT BANK did not comply with supervisor's restrictions on carrying some banking operations.

Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Due to the bad assets of the credit institution, it was impossible to perform financial rehabilitation of OJSC ROSSIYSKIY KREDIT BANK with the participation of the state corporation Deposit Insurance Agency on reasonable economic terms.

By its Order No. OD-1775, dated 24 July 2015, the Bank of Russia has appointed a provisional administration to OJSC ROSSIYSKIY KREDIT BANK 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 ROSSIYSKIY KREDIT BANK 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 legislation.

As of 1 July 2015, OJSC ROSSIYSKIY KREDIT BANK was ranked 45th by assets in the Russian banking system.