OREANDA-NEWS. By its Order No. OD-2071, dated 12 August 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution OPEN JOINT-STOCK COMPANY JOINT-STOCK COMMERCIAL BANK PROBUSINESSBANK or OJSC JSCB Probusinessbank (Registration No. 2412) from 12 August 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, capital adequacy below 2%, decrease in equity capital below the minimal amount of the authorised capital established as of the date of the state registration of the credit institution, and taking account of the application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

OJSC JSCB Probusinessbank implemented high-risk policy connected with placement of funds into low-quality assets. As a result of creating provisions adequate to the risks assumed, the credit institution lost its equity capital.

The management and owners of the credit institution did not take measures to normalise its activities. In these circumstances, pursuant to Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia revoked the banking licence from the credit institution.

According to the financial statements, as of 1 August 2015, OJSC JSCB Probusinessbank ranked 51st by assets in the Russian banking system.

Along with the decision to revoke the banking licence from OJSC JSCB Probusinessbank, pursuant to Article 18951 of the Federal Law 'On Insolvency (Bankruptcy)' the Bank of Russia approved a plan for participation of the state corporation Deposit Insurance Agency (hereinafter, the Agency) in resolution of liabilities of OJSC JSCB Probusinessbank. According to the participation plan the Agency shall hold a tender to select a bank to acquire a part of property and liabilities of OJSC JSCB Probusinessbank.

One of the requirements to tender participants will be their ability to start providing services to the Bank's depositors in the Bank's offices (or in the same locality) not later than 14 days after the approval of the plan for participation of the Agency in settling liabilities of OJSC JSCB Probusinessbank.

Pursuant to Clause 2 of Article 18926 and Clause 8 of Article 18951 of the Federal Law 'On Insolvency (Bankruptcy)', by its Order No. OD-2071, dated 12 August 2015, the Bank of Russia appointed the Agency to perform the functions of the provisional administration of OJSC JSCB Probusinessbank.