15.04.2016, 09:40
On Revocation of Banking Licence of Credit Institution Stella-Bank
OREANDA-NEWS. By its Order No. OD-1259, dated 14 April 2016, the Bank of Russia revoked the banking licence from the Rostov-on-Don-based credit institution Joint-Stock Commercial Bank Stella-Bank, joint-stock company, or JSC JSCB Stella-Bank (Registration No. 2948) from 14 April 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, repeated violations within a year of the requirements of Bank of Russia regulations issued in accordance with the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', and application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', considering a real threat to the creditors' and depositors' interests.
JSC JSCB Stella-Bank implemented high-risk lending policy and failed to create loan loss provisions adequate to the risks assumed. Besides, the bank failed to meet the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, compliance of internal control rules and submission of credible information to the authorised body on operations subject to obligatory control.
The credit institution was focused on aggressive fund raising from the general public. Under the conditions of restrictions and bans to encourage deposits introduced by the supervisory authority JSC JSCB Stella-Bank actively continued accepting them, including its business units in Moscow, at rates significantly exceeding the market rate.
By its Order No. OD-1260, dated 14 April 2016, the Bank of Russia has appointed a provisional administration to JSC JSCB Stella-Bank for the period until the appointment of a receiver pursuant to the Federal Law 'On 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.
JSC JSCB Stella-Bank is a participant in 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 RUB 1.4 million per one depositor.
According to financial statements, as of 1 April 2016, JSC JSCB Stella-Bank ranked 467th 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, repeated violations within a year of the requirements of Bank of Russia regulations issued in accordance with the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', and application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', considering a real threat to the creditors' and depositors' interests.
JSC JSCB Stella-Bank implemented high-risk lending policy and failed to create loan loss provisions adequate to the risks assumed. Besides, the bank failed to meet the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, compliance of internal control rules and submission of credible information to the authorised body on operations subject to obligatory control.
The credit institution was focused on aggressive fund raising from the general public. Under the conditions of restrictions and bans to encourage deposits introduced by the supervisory authority JSC JSCB Stella-Bank actively continued accepting them, including its business units in Moscow, at rates significantly exceeding the market rate.
By its Order No. OD-1260, dated 14 April 2016, the Bank of Russia has appointed a provisional administration to JSC JSCB Stella-Bank for the period until the appointment of a receiver pursuant to the Federal Law 'On 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.
JSC JSCB Stella-Bank is a participant in 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 RUB 1.4 million per one depositor.
According to financial statements, as of 1 April 2016, JSC JSCB Stella-Bank ranked 467th by assets in the Russian banking system.
Комментарии