OREANDA-NEWS. By its Order No. OD-2268, dated 27 August 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution public joint-stock company Joint-stock Commercial Bank European Bank for Development of the Metallurgical Industry or PJSC JSCB EUROMET (Registration No. 2902) from 27 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 authoruised capital established as of the date of the state registration of the credit institution, and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

PJSC JSCB EUROMET implemented high-risk lending policy connected with placement of funds into low-quality assets. As a result of meeting the supervisor's requirements on creating provisions adequate to the risks assumed, the credit institution lost its equity capital. Besides, PJSC JSCB EUROMET has actually stopped servicing its customers from the second half of August 2015. 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.

By its Order No. OD-2269, dated 27 August 2015, the Bank of Russia has appointed a provisional administration to PJSC JSCB EUROMET for the period until the appointment of a receiver pursuant to the Federal Law 'On 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.

PJSC JSCB EUROMET is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No. 177-FZ'On Insurance of Household Deposits with Russian Banks' regarding the bank's obligations on deposits of households determined in accordance with the legislation.

According to the financial statements, as of 1 August 2015, PJSC JSCB EUROMET ranked 255th by assets in the Russian banking system.