24 Jan 2020 12:06

CBR revokes license of DIS participant Nizhnevolzhsky Commercial Bank

MOSCOW. Jan 24 (Interfax) - The Central Bank of Russia has revoked the banking license of the Nizhnevolzhsky Commercial Bank (NCB) (Saratov) as of January 24, the CBR said in a statement.

"Problem loans constituted 65% of NCB's credit portfolio. The main source of funding for this activity was funds raised from the population (accounting for about 90% of funds raised by the bank). The Bank of Russia repeatedly sent NCB orders to increase its provisions, the performance of which revealed grounds for conducting bankruptcy proceedings. The NCB developed a plan for returning to financial stability, the main measures of which were declared unrealistic by the oversight authority," the CBR said.

Nizhnevolzhsky Commercial Bank participates in the Deposit Insurance System (DIS). The revocation of its license is an insurance event, and individuals depositors are entitled to receive 100% of their balances, but no more than 1.4 million rubles per depositor.

In Q3 2019, NCB was Russia's 176th largest bank by assets, according to the Interfax-100 ranking prepared by the Interfax Center Economic Analysis.

According to the CBR, the bank is owned by Vladislav Burov (19.9%), JSC Farrel (9.9%), JSC Lovir (9.9%), JSC Ontario (10%), and CJSC Guron (10%).