Bank of Russia revoked the banking licence from a credit institution
By its Order No. OD-872, dated 5 April 2017, the Bank of Russia revoked the banking licence from the Kazan-based credit institution LIMITED LIABILITY COMPANY TATARSTAN AGRICULTURAL AND INDUSTRIAL BANK or LLC TATAGROPROMBANK (Registration No.728) from 5 April 2017.
The decision was made following the complete loss of capital by LLC TATAGROPROMBANK, due to which the Bank of Russia had to revoke the licence from the credit institution. The supervisor has repeatedly applied supervisory measures to the bank, including restrictions on household deposit taking.
LLC TATAGROPROMBANK carried out operations aimed at financing credit institutions participating in the informal banking group to which PJSC Tatfondbank was a parent company. Following the creation of additional provisions for liabilities to PJSC Tatfondbank and PJSC Intechbank due to the revocation of their banking licences, the bank’s capital took on a negative value of roughly 0.6 billion rubles. Besides, LLC TATAGROPROMBANK failed to comply with legislative requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting information to the authorised body on time and in full.
The management and participants of the credit institution have not taken effective measures to bring its activities bank to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
By its Order No. OD-873, dated 5 April 2017, the Bank of Russia has appointed a provisional administration to LLC TATAGROPROMBANK 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 TATAGROPROMBANK 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 law. 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 no more than a total of 1.4 million rubles per one depositor.
According to the financial statements, as of 1 March 2017, LLC TATAGROPROMBANK ranked 400th by assets in the Russian banking system.
Source: Bank of Russia
