16.11.2015, 23:17
Bank of Russia Revoked Licence from JSC NST-BANK
OREANDA-NEWS. By its Order No. OD-3179, dated 16 November 2015, the Bank of Russia revoked the banking licence from the Novotroitsk-based credit institution joint-stock company Joint-stock Commercial Bank NOSTA or JSC NST-BANK (Registration No. 1738, the Orenburg Region) from 16 November 2015.
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, and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', taking into account a real threat to creditors' and depositors' interests.
JSC NST-BANK implemented high-risk lending policy and failed to create loan loss provisions adequate to the risks assumed. Besides, the credit institution's activity was aimed at aggressive borrowing of household funds. In addition, JSC NST-BANK failed to meet the supervisor's requirements aimed at restricting these operations. The management and owners of the bank did not take measures to normalise its activities.
By its Order No. OD-3180, dated 16 November 2015, the Bank of Russia has appointed a provisional administration to JSC NST-BANK 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.
JSC NST-BANK 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. This Federal Law provides for the payment of insurance indemnity to the bank's depositors, including individual entrepreneurs, in the amount of 100% of their balances but not exceeding the total of 1.4 million rubles per depositor.
According to the financial statements, as of 1 November 2015, JSC NST-BANK ranked 533rd 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, and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)', taking into account a real threat to creditors' and depositors' interests.
JSC NST-BANK implemented high-risk lending policy and failed to create loan loss provisions adequate to the risks assumed. Besides, the credit institution's activity was aimed at aggressive borrowing of household funds. In addition, JSC NST-BANK failed to meet the supervisor's requirements aimed at restricting these operations. The management and owners of the bank did not take measures to normalise its activities.
By its Order No. OD-3180, dated 16 November 2015, the Bank of Russia has appointed a provisional administration to JSC NST-BANK 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.
JSC NST-BANK 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. This Federal Law provides for the payment of insurance indemnity to the bank's depositors, including individual entrepreneurs, in the amount of 100% of their balances but not exceeding the total of 1.4 million rubles per depositor.
According to the financial statements, as of 1 November 2015, JSC NST-BANK ranked 533rd by assets in the Russian banking system.
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