On revocation of banking licence and appointment of provisional administration

By its Order No. OD-3574, dated 19 December 2014, the Bank of Russia revoked the banking licence from the Tyumen-based credit institution closed joint-stock company Joint-Stock Tyumen Commercial Agroindustrial Bank or CJSC TYUMENAGROPROMBANK (Registration No. 917) from 19 December 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, capital adequacy below 2%, decrease in equity (capital) below the minimal amount of the authoruised capital established as of the date of the state registration of the credit institution, and application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

CJSC TYUMENAGROPROMBANK implemented high-risk lending policy connected with placement of funds into low-quality assets. As a result of meeting the supervisor’s requirements on creating provisions adequate to the risks assumed, the credit institution lost its equity (capital). The management and owners of the bank did not take measures to normalise its activities and recover its financial status. In these circumstances, pursuant to Article 20 of the Federal Law ‘On Banks and Banking Activities’, the Bank of Russia revoked the banking licence from CJSC TYUMENAGROPROMBANK.

In 2014, CJSC TYUMENAGROPROMBANK was involved in large-scale dubious transactions.

By its Order No. OD-3575, dated 19 December 2014, the Bank of Russia has appointed a provisional administration to CJSC TYUMENAGROPROMBANK 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..

CJSC TYUMENAGROPROMBANK is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No. 177-FZ ‘On Insurance of Household Deposits with Russian Banks’ regarding the bank’s obligations on deposits of households determined in accordance with the legislation.

According to the financial statements, as of 1 December 2014, CJSC TYUMENAGROPROMBANK ranked 370^th by assets in the Russian banking system.

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

19.12.2014 00.00.00