OREANDA-NEWS. By its Order No. OD-3466, dated 4 December 2015, the Bank of Russia revoked the banking licence of the credit institution Commercial Bank FDB (limited liability company) or LLC CB FDB (Registration No. 3071, 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)'.

LLC CB FDB implemented high-risk lending policy connected with the placement of funds into low-quality assets. Credit risk adequate assessment revealed a complete loss of the bank's capital. At the same time, the credit institution was involved in dubious money transfer operations in significant amounts.

Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of LLC CB FDB in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.

By its Order No. OD-3467, dated 4 December 2015, the Bank of Russia has appointed a provisional administration to LLC CB FDB 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.

According to reporting data, as of 1 November 2015, LLC CB FDB ranked 335th in the Russian banking system in terms of assets.