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The Central Bank of the Russian Federation (Bank of Russia)

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On revocation of banking licence from OK Bank and appointment of provisional administration

On revocation of banking licence from OK Bank and appointment of provisional administration

By its Order No. OD-1328, dated 25.05.2018, the Bank of Russia revoked the banking licence from the Yaroslavl-based credit institution Public Joint-stock Company United Credit Bank, or PJSC OK Bank (Registration No. 1118) from 25.05.2018.

PJSC OK Bank repeatedly carried out scheme transactions to transform assets, aimed at concealing the bank’s real financial standing and avoiding the supervisor’s requirements to adequately assess the risks assumed; this resulted in a significant amount of dubious assets on the bank’s balance sheet. This May, PJSC OK Bank carried out securities transactions aimed at diverting a considerable share of liquid assets to the detriment of creditors and depositors.

The Bank of Russia has repeatedly applied supervisory measures against PJSC OK Bank, which included restrictions (on two occasions) and a ban on household deposit taking.

Under the circumstances, the Bank of Russia took the decision to withdraw PJSC OK Bank from the banking services market.

The Bank of Russia takes this measure following the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, 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)’, considering a real threat to the creditors’ and depositors’ interests.

By its Order No. OD-1329, dated 25.05.2018, the Bank of Russia appointed a provisional administration to PJSC OK Bank 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 federal laws, the powers of the credit institution’s executive bodies have been suspended.

Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-1328, dated 25.05.2018, the credit institution’s professional securities market participant licence was cancelled.

PJSC OK Bank 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 a total of 1.4 million rubles per depositor.

According to the financial statements, as of 01.05.2018, the credit institution ranked 200th by assets in the Russian banking system.

25 May 2018

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