Banking licence of NKO 21 VEK revoked and provisional administration appointed

By its Order No. OD-1622, dated 12 July 2019, the Bank of Russia revoked the banking licence of the Saint Petersburg-based Non-bank Credit Institution 21 VEK (limited liability company) or NKO 21 VEK Ltd (Reg. No. 3309-K, further referred to as NKO 21 VEK). The credit institution ranked 463^rd by assets in the Russian banking system.¹

The Bank of Russia took this decision in accordance with Clause 12, Part 2, Article 20 of the Federal Law ‘On Banks and Banking Activities’,² based on the facts that NKO 21 VEK:

• failed to increase capital to the minimum value established by the Federal Law ‘On Banks and Banking Activities’.

NKO 21 VEK have long experienced a business downturn. The management and owners of NKO 21 VEK failed to take effective measures to increase its capital to the minimum value of 90 million rubles as established by Article 11.2 of the Federal Law ‘On Banks and Banking Activities’ from 1 July 2019.

The Bank of Russia appointed a provisional administration³ to NKO 21 VEK for the period until the appointment of a receiver⁴ or a liquidator.⁵ In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.

NKO 21 VEK is not a member of the deposit insurance system.

¹ According to the financial statements as of 1 July 2019.

² The Bank of Russia took this decision in connection with the credit institution’s failure to comply with Parts 15 and 16, Article 11.2 of the Federal Law ‘On Banks and Banking Activities’, taking into account the fact that the non-bank credit institution failed to achieve the minimum capital as of 1 July 2019.

³ In accordance with Bank of Russia Order No. OD-1623, dated 12 July 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’.

The reference to the Press Service is mandatory if you intend to use this material.