CBR reports on activity of Just Bank LLC
OREANDA-NEWS. November 19, 2015. In the course of supervision over the activity of Just Bank LLC the Bank of Russia revealed material misstatement of the bank’s statements presented to the Bank of Russia as they did not reflect its real financial standing due to the inadequate assessment of credit risks assumed.
The presentation of accurate statements by Just Bank LLC would have resulted in grounds to revoke the bank’s licence pursuant to Clause 2 of Part 2 of Article 20 of the Federal Law ‘On Banks and Banking Activities’.
The Bank of Russia demanded that Just Bank LLC create additional provisions for outstanding loans and present accurate statements, but the bank failed to meet these demands.
Thus, the bank’s management concealed from the supervisory authority the grounds stipulated by Russian legislation for the mandatory revocation of its banking licence that bore the evidence of a criminal offence, specified in Article 172.1 of the Criminal Code of the Russian Federation.
By its Order No. OD-2981, dated 2 November 2015, Bank of Russia revoked the banking licence from Just Bank LLC from 2 November 2015.
The Bank of Russia has submitted the information on the activity of the management of Just Bank LLC bearing the evidence of a criminal offence to the Investigation Committee of the Russian Federation for consideration and procedural decision making.
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