Banking licence of PJSC Nevsky Bank revoked
By its Order No. OD-2848, dated 13 December 2019, the Bank of Russia revoked the banking licence of the Saint Petersburg-based Public Joint-stock Company Nevsky Narodny Bank (PJSC Nevsky Bank) (Reg. No. 1068; hereinafter, Nevsky Bank). The credit institution ranked 317th by assets in the Russian banking system1.
The Bank of Russia took this decision in accordance with Clause 6, Part 1 and Clauses 1 and 2, Part 2, Article 20 of the Federal Law ‘On Banks and Banking Activities’2, based on the facts that Nevsky Bank:
- lost its capital as a result of the theft of a major part of its assets;
- violated federal banking laws and Bank of Russia regulations, making the regulator repeatedly apply supervisory measures over the last 12 months.
In the first ten days of December 2019, unidentified persons stole cash and securities worth more than 3.0 billion rubles from the credit institution. The Bank created required loss provisions for actually non-existent assets and as a result completely lost its capital. Based on the credit institution’s claim, law enforcement agencies opened a criminal investigation into the theft of monetary funds
The Bank of Russia appointed a provisional administration3 to Nevsky Bank for the period until the appointment of a receiver4 or a liquidator5. In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: Nevsky Bank is a participant in the deposit insurance system; therefore depositors6 will be compensated for their deposits in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per depositor (including interest accrued).
Deposits are to be repaid by the State Corporation Deposit Insurance Agency (hereinafter, the Agency). Depositors may obtain detailed information regarding the repayment procedure 24/7 at the Agency’s hotline
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1 According to the financial statements as of 1 December 2019.
2 The Bank of Russia took such an extreme measure because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, all equity capital adequacy ratios below two per cent, decrease in the bank’s equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, and given the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
3 In accordance with Bank of Russia Order No. OD-2849, dated 13 December 2019.
4 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
5 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
6 Depositors mean individuals, including those who are engaged in entrepreneurial activity (individual entrepreneurs), and legal entities that are considered small businesses in accordance with the Federal Law ‘On the Development of Small and Medium-sized Enterprises in the Russian Federation’.
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