OREANDA-NEWS. By its Order No. OD-900, dated 17 March 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution National Corporate Bank, joint-stock company, or NATSCORPBANK JSC (Registration No. 3422) from 17 March 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, repeated violations within one year of Bank of Russia requirements stipulated by Articles 6, 7 (excluding Clause 3 of Article 7) of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism' and Bank of Russia regulatory requirements issued in accordance with the said law, equity capital adequacy ratios below two per cent, decrease in bank equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, due to application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

NATSCORPBANK JSC was violating banking laws and Bank of Russia regulations during credit risk assessments. The performance of requirements of the supervisory authority to create provisions adequate to the risks assumed resulted in the critical downgrading of the credit institution's equity capital. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.

Besides, NATSCORPBANK JSC failed to meet the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, the timely and credible notification of the authorised body of operations subject to obligatory control. Also, NATSCORPBANK JSC was involved in dubious operations, including dubious transit operations.

By its Order No. OD-901, dated 17 February 2016, the Bank of Russia has appointed a provisional administration to NATSCORPBANK JSC 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 compliance with federal laws the powers of the credit institution's executive bodies have been suspended.

NATSCORPBANK JSC 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 1.4 million rubles per one depositor.

According to the financial statements, as of 1 March 2016, NATSCORPBANK JSC ranked 487th by assets in the Russian banking system.