28.04.2016, 17:42
On Revocation of Banking Licence of Bank MBFI
OREANDA-NEWS. By its Order No. OD-1364, dated 27 April 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution OPEN JOINT-STOCK COMPANY INTERNATIONAL BANK OF FINANCE AND INVESTMENTS or OJSC BANK MBFI (Registration No. 2073) from 27 April 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, due to the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', considering a real threat to the creditors' and depositors' interests.
OJSC BANK MBFI implemented high-risk lending policy and did not create loan loss provisions adequate to the risks assumed. Moreover, the credit institution was involved in dubious transit operations. The management and owners of the credit institution did not take effective measures to normalise its activities.
By its Order No. OD-1365, dated 27 April 2016, the Bank of Russia has appointed a provisional administration to OJSC BANK MBFI for the period until the appointment of a receiver pursuant to the Federal Law 'On 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.
OJSC BANK MBFI 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 April 2016, OJSC BANK MBFI ranked 567th by assets in the Russian banking system.
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, due to the application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', considering a real threat to the creditors' and depositors' interests.
OJSC BANK MBFI implemented high-risk lending policy and did not create loan loss provisions adequate to the risks assumed. Moreover, the credit institution was involved in dubious transit operations. The management and owners of the credit institution did not take effective measures to normalise its activities.
By its Order No. OD-1365, dated 27 April 2016, the Bank of Russia has appointed a provisional administration to OJSC BANK MBFI for the period until the appointment of a receiver pursuant to the Federal Law 'On 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.
OJSC BANK MBFI 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 April 2016, OJSC BANK MBFI ranked 567th by assets in the Russian banking system.
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