04.12.2015, 23:11
Bank of Russia Revoked Licence of Bank Eurocredit
OREANDA-NEWS. By its Order No. OD-3464, dated 4 December 2015, the Bank of Russia revoked the banking licence of the credit institution Commercial Bank Eurocredit (limited liability company) or Bank Eurocredit (LLC) (Registration No. 2957, the city of Moscow) from 4 December 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, all capital adequacy ratios being below 2 percent, decrease in capital below the minimal value of the authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, and the application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
Bank Eurocredit (LLC) placed funds into low-quality assets and did not create provisions adequate to the risks assumed. Creation of additional provisions in required amounts resulted in a complete loss of the bank's capital. Besides, the credit institution was involved in dubious operations connected with overseas money transfer in significant amounts.
Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.
By its Order No. OD-3465, dated 4 December 2015, the Bank of Russia has appointed a provisional administration to Bank Eurocredit (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.
Bank Eurocredit (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. The said Federal Law provides for the payment of indemnities to the bank's depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but not more than 1.4 million rubles per depositor.
According to reporting data, as of 1 November 2015, Bank Eurocredit (LLC) ranked 370th in the Russian banking system in terms of assets.
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, all capital adequacy ratios being below 2 percent, decrease in capital below the minimal value of the authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, and the application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
Bank Eurocredit (LLC) placed funds into low-quality assets and did not create provisions adequate to the risks assumed. Creation of additional provisions in required amounts resulted in a complete loss of the bank's capital. Besides, the credit institution was involved in dubious operations connected with overseas money transfer in significant amounts.
Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.
By its Order No. OD-3465, dated 4 December 2015, the Bank of Russia has appointed a provisional administration to Bank Eurocredit (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.
Bank Eurocredit (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. The said Federal Law provides for the payment of indemnities to the bank's depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but not more than 1.4 million rubles per depositor.
According to reporting data, as of 1 November 2015, Bank Eurocredit (LLC) ranked 370th in the Russian banking system in terms of assets.
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