On revocation of banking licence of credit institution NCB and appointment of provisional administration
By its Order No.OD-4840, dated 29 December 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank NCB (Limited Liability Company) or LLC CB NCB (Registration No. 2942) from 29 December 2016.
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, repeated violations within a year of Bank of Russia requirements stipulated by Articles 6 and 7 (excluding Clause 3 of Article 7) of the Federal Law ’On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ as well as application of the measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’ and taking into account a real threat to the interests of creditors and depositors.
With its poor asset quality the credit institution failed to adequately assess the risks assumed. LLC CB NCB did not comply with legislation requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting true and full information on operations subject to mandatory control to the authorised body. Besides, the credit institution failed to meet the supervisor’s instructions on prohibiting certain banking operations. The management and owners of LLC CB NCB failed to take any effective measures to bring the situation back to normal.
By its Order No. OD-4841, dated 29 December 2016, the Bank of Russia has appointed a provisional administration to LLC CB NCB 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 are suspended.
LLC CB NCB is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
According to the financial statements, as of 1 December 2016, LLC CB NCB ranked 527th by assets in the Russian banking system.
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29.12.2016 00.00.00