On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2121, dated 18 August 2014, the Bank of Russia revoked the banking licence from the Perm-based credit institution OPEN JOINT-STOCK COMPANY JOINT-STOCK COMMMERCIAL BANK ECOPROMBANK or OJSC JSCB ECOPROMBANK (Registration No. 2011) from 18 August 2014.
The Bank of Russia took such an 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, inability to meet the creditors’ claims on monetary liabilities and taking into account the repeated application over the past year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
The Bank implemented high-risk lending policy connected with placement of funds into low-quality assets. Due to the unsatisfactory quality of assets which failed to accumulate sufficient cash flow OJSC JSCB ECOPROMBANK failed to timely honour its liabilities to creditors and depositors. The management and owners of OJSC JSCB ECOPROMBANK have not taken measures required to normalise its activities and recover its financial status. In this circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked the banking licence from OJSC JSCB ECOPROMBANK.
By its Order No. 2122, dated 18 August 2014, the Bank of Russia has appointed a provisional administration to OJSC JSCB ECOPROMBANK for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ 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 are suspended.
OJSC JSCB ECOPROMBANK is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.
As of 1 August 2014, OJSC JSCB ECOPROMBANK ranked 263rdby assets in the Russian banking system.
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