Bank of Russia Revoked Banking Licence from METROBANK
OREANDA-NEWS. By its Order No. OD-1210, dated 1 June 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution joint-stock company METROBANK or JSC METROBANK (Registration No. 2548) from 1 June 2015.
The Bank of Russia took such an extreme measure - revocation of the banking licence - because of the failure of the credit institution to comply with federal banking laws and Bank of Russia regulations, and application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', and considering a real threat to creditors' and depositors' interests.
JSC METROBANK implemented high-risk lending policy, did not create loan loss provisions adequate to the risks assumed. Due to unsatisfactory asset quality, the credit institution failed to generate sufficient cash flow and consistently failed to meet obligations to creditors and depositors on a timely basis. The management and owners of the credit institution did not take effective measures to normalise its activities.
By its Order No. OD-1211, dated 1 June 2015, the Bank of Russia has appointed a provisional administration to JSC METROBANK 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.
JSC METROBANK is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No. 177-FZ 'On Insurance of Household Deposits with Russian Banks' regarding the bank's obligations on deposits of households determined in accordance with the legislation.
According to the financial statements, as of 1 May 2015, JSC METROBANK ranked 248th by assets in the Russian banking system.
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