OREANDA-NEWS. By its Order No.OD-3671, dated 27 October 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Limited Liability Company Westinterbank or Westinterbank LLC (Registration No. 3398) from 27 October 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, the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’ and considering the existence of a real threat to the interests of its creditors and depositors.

By placing funds into poor quality assets Westinterbank LLC failed to adequately assess the risks assumed. In the wake of fulfilling supervisor’s requirements to build up EL provisions to cover the risks assumed the credit institution’s activity resulted in the grounds for implementing insolvency (bankruptcy) prevention measures. Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Under these circumstances, the Bank of Russia took a decision to revoke the banking licence of Westinterbank LLC.

By its Order No. OD-3672, dated 27 October 2016, the Bank of Russia appointed a provisional administration to Westinterbank LLC 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.

According to the financial statements, as of 1 October 2016, Westinterbank LLC ranked 489th by assets in the Russian banking system.