Banking licence of Bank Prime Finance JSC revoked and provisional administration appointed

By its Order No. OD-1302, dated 6 June 2019, the Bank of Russia revoked the banking licence from the credit institution Bank Prime Finance (Joint-stock Company), or Bank Prime Finance (JSC) (Registration No. 2758, St Petersburg, hereinafter, Bank Prime Finance). The credit institution ranked 366th by assets in the Russian banking system1.

The Bank of Russia took this decision in accordance with Clause 6, Part 1 and Clauses 1 and 2, Part 2, Article 20 of the Federal Law ‘On Banks and Banking Activities’2, based on the facts that Bank Prime Finance:

    • has completely lost its equity capital after the Bank of Russia revealed cash shortage totalling over 268 million rubles;
    • performed ‘scheme’ operations to artificially maintain its capital to formally comply with the required ratios;
    • violated federal banking laws and Bank of Russia regulations, making the regulator repeatedly apply supervisory measures over the past 12 months, including two impositions of restrictions on attracting household deposits.

On 29 May 2019, a Bank of Russia inspection of tills at Bank Prime Finance branches revealed a large cash shortage. Creation of required loss provision for actually non-existent assets led a complete loss of capital by the credit institution.

The Bank of Russia submitted information about the bankj’s transactions suggestive of a criminal offence to law enforcement agencies.

The Bank of Russia appointed a provisional administration3 to Bank Prime Finance for the period until the appointment of a receiver4 or a liquidator5. In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.

Information for depositors: Bank Prime Finance is a participant in the deposit insurance system, therefore depositors6 will be compensated for their deposits 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 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 ( in the Deposit Insurance / Insurance Events section.