On revocation of banking licence from South Regional Bank and appointment of provisional administration
By Order No. OD-1830, dated 20 July 2018, the Bank of Russia revoked the banking licence of the Rostov-on-Don-based credit institution Limited Liability Society South Regional Bank, or LTD SRB (Registration No. 3015) from 20 July 2018. According to financial statements, as of 1 July 2018, the credit institution ranked 487th by assets in the Russian banking system; its impact on the aggregate indexes of the banking sector of the Rostov Region was unsubstantial.
For a long time, LTD SRB was experiencing a significant decline of business activity and an outflow of clients on the back of the negative business reputation of its management. Besides, the bank failed to properly assess its credit risks. Also, the credit institution’s operations were found non-compliant with legislative requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism.
The Bank of Russia had repeatedly (4 times over the last 12 months) applied supervisory measures against LTD SRB including restriction on household deposit taking.
The credit institution’s management and owners failed to take effective measures to normalise its activities. Under these circumstances, the Bank of Russia took the decision to revoke LTD SRB’s banking licence.
The Bank of Russia took this measure following the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations, within a year, 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 multiple applications within one year of measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’.
By its Order No. OD-1831, dated 20 July 2018, the Bank of Russia appointed a provisional administration to LTD SRB 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.
LTD SRB 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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