24.11.2015, 23:38
Bank of Russia Revoked Licence from Bank Baltica
OREANDA-NEWS. By its Order No. OD-3288, dated 24 November 2015, Bank of Russia revoked the banking licence from the Moscow-based credit institution Joint-stock Commercial Bank Baltica, public joint-stock company, or PJSC JSCB Baltica (Registration No. 967) from 24 November 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, and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia), taking into account a real threat to the interests of creditors and depositors.
PJSC JSCB Baltica placed funds into low-quality assets and did not create loan loss provisions and provisions for other assets adequate to the risks assumed. Meeting the requirements of the supervisory authority to create sufficient provisions resulted in a substantial loss of the bank's equity capital. Besides, the credit institution was involved in dubious transit operations, including large-value cash withdrawals abroad. The management and owners of the bank did not take required measures to normalise its activities.
By its Order No. OD-3289, dated 24 November 2015, Bank of Russia has appointed a provisional administration to PJSC JSCB Baltica 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.
PJSC JSCB Baltica 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. The said federal law stipulates the reimbursement of insurance premium to the bank's depositors, including individual entrepreneurs, in 100 per cent amount of the balance of funds, but not more than 1.4 million roubles in aggregate per depositor.
According to the financial statements, as of 1 November 2015, PJSC JSCB Baltica ranked 162nd by assets in the Russian banking system.
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, and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia), taking into account a real threat to the interests of creditors and depositors.
PJSC JSCB Baltica placed funds into low-quality assets and did not create loan loss provisions and provisions for other assets adequate to the risks assumed. Meeting the requirements of the supervisory authority to create sufficient provisions resulted in a substantial loss of the bank's equity capital. Besides, the credit institution was involved in dubious transit operations, including large-value cash withdrawals abroad. The management and owners of the bank did not take required measures to normalise its activities.
By its Order No. OD-3289, dated 24 November 2015, Bank of Russia has appointed a provisional administration to PJSC JSCB Baltica 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.
PJSC JSCB Baltica 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. The said federal law stipulates the reimbursement of insurance premium to the bank's depositors, including individual entrepreneurs, in 100 per cent amount of the balance of funds, but not more than 1.4 million roubles in aggregate per depositor.
According to the financial statements, as of 1 November 2015, PJSC JSCB Baltica ranked 162nd by assets in the Russian banking system.
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