25.03.2016, 01:58
On Revocation of Banking Licence of Credit Institution Bogorodsky
OREANDA-NEWS. By Order No. OD-988, dated 24 March 2016, the Bank of Russia revoked the banking licence of the credit institution Commercial Bank Bogorodsky, limited liability company, or Bank Bogorodsky LLC (Registration Number: 1277, the Nizhny Novgorod Region, the town of Bogorodsk) from 24 March 2016.
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, equity capital adequacy ratios below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, due to repeated application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
Bank Bogorodsky LLC implemented a high-risk lending policy connected with the placement of funds in low-quality assets. As a result of meeting the supervisor's requirements on creating provisions adequate to the risks assumed, the credit institution fully lost its equity (capital). The management and owners of the credit institution did not take effective measures to normalise its activities. 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-989, dated 24 March 2016, the Bank of Russia has appointed a provisional administration to Bank Bogorodsky 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 the federal laws, the powers of the credit institution's executive bodies have been suspended.
Bank Bogorodsky 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 law. 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 no more than 1.4 million per one depositor.
According to the financial statements, as of 1 March 2016, Bank Bogorodsky LLC ranked 476th 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, equity capital adequacy ratios below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, due to repeated application within a year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
Bank Bogorodsky LLC implemented a high-risk lending policy connected with the placement of funds in low-quality assets. As a result of meeting the supervisor's requirements on creating provisions adequate to the risks assumed, the credit institution fully lost its equity (capital). The management and owners of the credit institution did not take effective measures to normalise its activities. 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-989, dated 24 March 2016, the Bank of Russia has appointed a provisional administration to Bank Bogorodsky 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 the federal laws, the powers of the credit institution's executive bodies have been suspended.
Bank Bogorodsky 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 law. 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 no more than 1.4 million per one depositor.
According to the financial statements, as of 1 March 2016, Bank Bogorodsky LLC ranked 476th by assets in the Russian banking system.
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