29.03.2016, 01:30
Bank of Russia Revoked Licence from JSC SMARTBANK
OREANDA-NEWS. By its Order No. OD-1013, dated 28 March 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Joint Stock Company SMARTBANK or JSC SMARTBANK (Registration No. 3408) from 28 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 a year of Bank of Russia requirements stipulated by Articles 6 and 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', capital adequacy ratios being below 2 percent and considering the repeated application within a year of the measures stipulated by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
JSC SMARTBANK implemented a high-risk lending policy connected with the placement of funds in low-quality assets. At the same time, the bank's capital adequacy ratios reached critical levels. Besides, the bank failed to comply with the requirements of law and the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting information to the authorised body on time and in full. JSC SMARTBANK was involved in dubious operations including dubious transit operations.
The management and owners of the credit institution did not take any action to bring its activities back to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.
By its Order No. OD-1014, dated 28 March 2016, the Bank of Russia has appointed a provisional administration to JSC SMARTBANK 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 the federal laws, the powers of the credit institution's executive bodies have been suspended.
JSC SMARTBANK 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 not more than 1.4 million rubles per depositor.
According to the financial statements, as of 1 March 2016, JSC SMARTBANK ranked 378th 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, repeated violations within a year of Bank of Russia requirements stipulated by Articles 6 and 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', capital adequacy ratios being below 2 percent and considering the repeated application within a year of the measures stipulated by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
JSC SMARTBANK implemented a high-risk lending policy connected with the placement of funds in low-quality assets. At the same time, the bank's capital adequacy ratios reached critical levels. Besides, the bank failed to comply with the requirements of law and the Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting information to the authorised body on time and in full. JSC SMARTBANK was involved in dubious operations including dubious transit operations.
The management and owners of the credit institution did not take any action to bring its activities back to normal. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.
By its Order No. OD-1014, dated 28 March 2016, the Bank of Russia has appointed a provisional administration to JSC SMARTBANK 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 the federal laws, the powers of the credit institution's executive bodies have been suspended.
JSC SMARTBANK 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 not more than 1.4 million rubles per depositor.
According to the financial statements, as of 1 March 2016, JSC SMARTBANK ranked 378th by assets in the Russian banking system.
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