The Russian Central Bank revoked Banking licence of a commercial Bank 

By its Order No. OD-3414, dated 5 October 2016, the Bank of Russia revoked a banking licence of the Moscow-based credit institution Commercial Bank IMoneyBank, limited liability company, or LLC CB IMoneyBank (Registration No. 1975) from 5 October 2016.

The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with the federal banking laws and the Bank of Russia regulations, equity capital adequacy ratios below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, considering repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

LLC CB IMoneyBank placed funds in low-quality assets and inadequately assessed risks assumed. Creation of required provisions gave rise to a full loss of equity capital. Management and owners of the credit institution did not take efficient measures to bring its activities back to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.

By its Order No. OD-3415, dated 5 October 2016, the Bank of Russia has appointed a provisional administration to LLC CB IMoneyBank 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 IMoneyBank is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by legislation. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but not more than 1.4 million rubles per depositor.

According to reporting data, as of 1 September 2016, LLC CB IMoneyBank ranked 150th in terms of assets in the Russian banking system.

Source: CBR

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