Banking licence of JSC AKTIV BANK revoked
By its Order No. OD-1267, dated 25 June 2021, the Bank of Russia revoked the banking licence of the Saransk-based JSC AKTIV BANK (Reg. No. 2529; hereinafter, AKTIV BANK). The credit institution ranked 192nd by assets in the Russian banking system.1
The Bank of Russia made this decision in accordance with Clauses 6 and 6.1 of Part 1 of Article 20 of the Federal Law ‘On Banks and Banking Activities’, based on the facts that AKTIV BANK:
- understated the value of required provisions for possible losses on loan and similar debts and overstated the value of its assets to artificially improve its financial performance and conceal its actual financial standing;
- violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied supervisory measures against it over the last 12 months, including restrictions on a number of banking operations;
- failed to comply with the anti-money laundering and counter-terrorist financing laws.
Non-performing loans made a significant portion in AKTIV BANK’s loan portfolio. The quality of the credit institution’s loan portfolio was low, but it carried out operations aiming to maintain the value of capital fictitiously in order to feign compliance with the prudential requirements for banking.
The Bank of Russia sent an order to AKTIV BANK demanding it to form loss provisions in the required amount. However, as AKTIV BANK fulfilled this order, this created grounds in its activities for implementing measures aimed at preventing its insolvency (bankruptcy) due to the fact that its equity decreased by over 40% and AKTIV BANK thus breached a range of required ratios. These circumstances proved that AKTIV BANK’s operations posed a real threat to the creditors’ and depositors’ interests.
The Bank of Russia also cancelled AKTIV BANK’s professional securities market participant licence.
The Bank of Russia appointed a provisional administration3 to AKTIV BANK 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.
Information for depositors: AKTIV BANK is a participant in the deposit insurance system; therefore, its depositors6 will be compensated for their deposits in the amount of 100% of the balance of funds, but no more than a total of 1.4 million rubles per depositor (including interest accrued), taking into account the conditions stipulated by Chapter 2.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’.
Deposits are to be repaid by the State Corporation Deposit Insurance Agency (hereinafter, the Agency). Depositors may obtain detailed information regarding the repayment procedure 24/7 at the Agency’s hotline
1 According to the financial statements as of 1 June 2021.
2 The Bank of Russia made this decision due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of the requirements stipulated by Articles 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’, and the requirements of Bank of Russia regulations issued in accordance with the above Federal Law, taking into account the repeated application within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ and the existence of a real threat to the interests of AKTIV BANK’s creditors and depositors.
3 In accordance with Bank of Russia Order No. OD-1268, dated 25 June 2021.
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’.
6 Depositor — a citizen of the Russian Federation, foreign citizen or person without citizenship, including those engaged in entrepreneurial activity, or a legal entity specified in Article 5.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’ which concluded a bank deposit/account agreement with a bank, or any of the above mentioned persons in whose favour the deposit was made and (or) who is the holder of a savings certificate, or an owner of a special account (special deposit) intended to form and use the fund of capital repairs of common property in an apartment house opened in accordance with the requirements of the Housing Code of the Russian Federation.
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25.06.2021 00.00.00