By its Order No. OD-1583, dated 2 October 2020, the Bank of Russia revoked a banking licence from the Moscow-based credit institution Commercial Fuel & Energy Interregional Bank for Reconstruction and Development (joint-stock company), or TEMBR-BANK (JSC) (Registration No. 2764, hereinafter, TEMBR-BANK). The credit institution ranked 186th by assets in the Russian banking system.1
The Bank of Russia took this decision in accordance with Clauses 6 and 6.1 of Part 1 of Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that TEMBR-BANK:
- violated federal banking laws and Bank of Russia regulations, which included the understatement of the value of required loss provisions to be formed, due to which the regulator repeatedly applied supervisory measures against it over the last 12 months, including restrictions on attracting funds of individuals;
- committed violations of the anti-money laundering and counter-terrorist financing laws and Bank of Russia regulations.
The Bank of Russia repeatedly sent the credit institution orders to make a proper assessment of risks assumed and to reflect its real financial standing in the financial statements. Compliance with the supervisor’s requests led to reasonable grounds for taking measures to prevent the credit institution’s insolvency (bankruptcy), which created a real threat to the interests of its creditors and depositors.
The bank was operating in the context of a corporate conflict.
The Bank of Russia also cancelled TEMBR-BANK’s professional securities market participant licence.
The Bank of Russia appointed a provisional administration to TEMBR-BANK3 for the period until the appointment of a receiver4 or a liquidator.5 In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: TEMBR-BANK is a participant in the deposit insurance system, therefore depositors will be compensated for their deposits6 in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per depositor (including interest accrued).
Deposits are to be repaid by the State Corporation Deposit Insurance Agency (hereinafter, the Agency). Depositors may obtain detailed information regarding the repayment procedure 24/7 at the Agency’s hotline (8 800 200-08-05) and on its website (https://www.asv.org.ru/) in the Deposit Insurance/Insurance Events section.
1 According to the financial statements as of 1 September 2020.
2 The Bank of Russia made this decision because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of the 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’, as well as Bank of Russia regulations issued in pursuance thereof and repeated application within a year of measures stipulated by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, taking into account a real threat to the interests of creditors and depositors.
3 In accordance with Bank of Russia Order No. OD-1584, dated 2 October 2020.
4 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
5 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
6 Depositors mean individuals, including those who are engaged in entrepreneurial activity (individual entrepreneurs), and legal entities that are considered small businesses in accordance with the Federal Law ‘On the Development of Small and Medium-sized Enterprises in the Russian Federation’.