OREANDA-NEWS. By its Order No. OD-2534, dated 24 September 2015, the Bank of Russia revoked the banking licence from the Barnaul-based credit institution joint-stock company Zernobank or JSC Zernobank (Registration No. 2337) from 24 September 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, application over the year of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', and taking account of a real threat to the interests of creditors and depositors.

Due to the unsatisfactory quality of assets not generating sufficient cash flows, starting this September JSC Zernobank systematically failed to timely honour its obligations to creditors. The management and owners of the bank did not take measures to normalise its activities and recover its financial status. Due to the increasing threat to the interests of creditors and depositors and in order to preserve bankruptcy assets, the Bank of Russia decided to revoke the banking licence of the credit institution.

By its Order No. OD-2535, dated 24 September 2015, the Bank of Russia has appointed a provisional administration to JSC Zernobank 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.

JSC Zernobank 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 September 2015, JSC Zernobank ranked 392nd by assets in the Russian banking system.