On revocation of banking licence and appointment of provisional administration
By its Order No. OD-1545, dated 3 July 2015, the Bank of Russia revoked a banking licence from the Moscow-based credit institution joint-stock company Bank Klientsky or JSC Bank Klientsky (Registration number 2324) from 3 July 2015.
The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one 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 due to applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
Due to the low quality of its assets, JSC Bank Klientsky failed to adequately assess its loan portfolio and the risks thereto related. An adequate assessment risks assumed created grounds for the bank to implement insolvency (bankruptcy) prevention measures. At the same time, the credit institution implemented an aggressive lending policy and failed to comply with the supervisory authority’s instructions to restrict its activities.
JSC Bank Klientsky also failed to comply with Bank of Russia regulations in terms of countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in respect of submitting to the authorised body of reliable data on operations subject to obligatory control. Bank management and owners did not take any measures to bring its activity back to normal.
By its Order No. OD-1546, dated 3 July 2015, the Bank of Russia has appointed a provisional administration to JSC Bank Klientsky for the period until the appointments 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 body are suspended.
JSC Bank Klientsky is a member of the deposit insurance system. The revocation of the banking licence is an insured event envisaged by Federal Law No.
According to financial statements, as of 1 June 2015, JSC Bank Klientsky ranked 200th by assets in the Russian banking system.
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