OREANDA-NEWS. By its Order No. OD-1790, dated 27 July 2015, the Bank of Russia revoked the banking licence from the credit institution PUBLIC JOINT-STOCK COMPANY COMMERCIAL BANK TULSKII PROMYSHLENNIK or BANK TULSKII PROMYSHLENNIK (PJSC) (registration number 2382, the city of Tula) from 27 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, all capital adequacy ratios being below 2 percent, decrease in own funds (capital) below the minimal value of authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution and the application within a year 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 assessments of risks assumed resulted in a total loss of its capital.

Due to the bad assets of the credit institution, it was impossible to perform financial rehabilitation of BANK TULSKII PROMYSHLENNIK (PJSC) with the participation of the state corporation Deposit Insurance Agency on reasonable economic terms. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.

BANK TULSKII PROMYSHLENNIK (PJSC) 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, BANK TULSKII PROMYSHLENNIK (PJSC) was ranked 449th by assets in the Russian banking system.