OREANDA-NEWS. By its Order No. OD-2270, dated 27 August 2015, the Bank of Russia revoked a banking licence from the credit institution Commercial Bank Business-to-Business (limited liability company) or CB BTB (LLC) (Registration No. 1060, the Chuvash Republic, the city of Yadrin) from 27 August 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, and due to repeated violations within one year of the requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', taking into account the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)' as well as considering a real threat to the bank's creditors and investors.

CB BTB (LLC) placed funds into low-quality assets and did not create loan loss provisions adequate to the risks assumed. Creation of sufficient loan loss provisions resulted in a substantial loss of the bank's capital. Besides, CB BTB (LLC) failed to comply with legislation requirements in terms of proper notification of the authorised body about operations subject to obligatory control and identification procedure of its clients. Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal.

By its Order No. OD-2271, dated 27 August 2015, the Bank of Russia has appointed a provisional administration to CB BTB (LLC) 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.

CB BTB (LLC) 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 August 2015, CB BT (LLC) was ranked 630th by assets in the Russian banking system.