On revocation of banking licence from Bank Voronezh and appointment of provisional administration
By its Order No. OD-1480, dated 15 June 2018, the Bank of Russia revoked a banking licence from the Voronezh-based credit institution Joint-stock company Bank Voronezh, or JSC Bank Voronezh (Registration No. 654) from 15 June 2018. According to the financial statements, as of 01 June 2018, the credit institution ranked 211th by assets in the Russian banking system.
JSC Bank Voronezh was a settlement centre of several payment systems; however, the Bank of Russia did not categorise it as an important credit institution in the payment services market.
JSC Bank Voronezh carried out scheme transactions to replace assets, aimed at concealing the bank’s real financial standing and formal compliance with prudential regulations; this resulted in a significant amount of dubious assets on the bank’s balance sheet. This June, JSC Bank Voronezh conducted operations with property aimed at siphoning assets to the detriment of creditors’ and depositors’ interests.
The supervisory action against the bank’s activities established ‘shadow’ currency exchange operations which were not recorded in its accounting records and statements submitted to the Bank of Russia.
The Bank of Russia repeatedly applied supervisory measures against JSC Bank Voronezh, which included restrictions to carry out certain transactions, including household deposit taking.
The management and owners of the credit institution failed to take effective measures to normalise its activities. Moreover, their actions were identified as bearing signs of a criminal offence, of which the Bank of Russia will submit information to law enforcement agencies.
Under the circumstances, the Bank of Russia took the decision to withdraw JSC Bank Voronezh from the banking services market.
The Bank of Russia takes this 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, due to repeated 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.
Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-1480, dated 15 June 2018, the credit institution’s professional securities market participant licence was cancelled.
By its Order No. OD-1481, dated 15 June 2018, the Bank of Russia has appointed a provisional administration to JSC Bank Voronezh 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 federal laws, the powers of the credit institution’s executive bodies were suspended.
JSC Bank Voronezh is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
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