MIL-OSI EU-Baltics: On revocation of banking licence from non-bank credit institution Innovative Settlement Centre and appointment of provisional administration (10.08.2018)

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Source: Central Bank of the Russian Federation in English

Information Notice
On revocation of banking licence from non-bank credit institution Innovative Settlement Centre and appointment of provisional administration
By its Order No. OD-2077, dated 10 August 2018, the Bank of Russia revoked the banking licence from the Moscow-based credit institution joint-stock company Non-bank Settlement Credit Institution Innovative Settlement Centre or JSC NSCI ISC (Registration No. 3447-K) effective 10 August 2018. According to the financial statements, as of 1 August 2018, the credit institution ranked 503rd by assets in the Russian banking system. JSC NSCI ISC is not a member of the deposit insurance system.
The activity of JSC NSCI ISC has long been unprofitable due to the credit institution’s ineffective business model. Following the creation of loss provisions on bad debt in the balance sheet of JSC NSCI ISC in August 2018, its equity capital dropped significantly.
The management and owners of the credit institution failed to take effective measures to normalise its activities. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from JSC NSCI ISC in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
The Bank of Russia took this decision following the decrease in equity capital of the credit institution below the minimum level of authorised capital established as of the date of its state registration.
By its Order No. OD-2078, dated 10 August 2018, the Bank of Russia has appointed a provisional administration to JSC NSCI ISC 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 were suspended.

10 August 2018
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