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 TROIKA-D BANK:
- failed to comply with legislation and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism. The credit institution failed to timely provide credible information to the authorised body about operations subject to obligatory control;
- systematically understated the amount of provisions to be set up and overstated the value of assets in order to improve its financial indicators and conceal its actual financial standing. The Bank of Russia estimates that an adequate reflection in the credit institution’s financial statements of credit risks taken and the value of its assets will lead to a significant (over 40%) decrease in its capital and, consequently, to grounds to take measures to prevent the credit institution’s insolvency (bankruptcy), which creates a real threat to interests of its creditors and depositors;
- performed ‘scheme’ operations to artificially maintain its capital to formally comply with the required ratios;
- repeatedly violated restrictions to carry out certain transactions imposed by the supervisor to protect depositors’ interests;
- violated federal banking laws and Bank of Russia regulations, making the regulator repeatedly apply supervisory measures over the last 12 months, including two impositions of restrictions on attracting household deposits.
The activities of TROIKA-D BANK bore signs of misconduct aimed at asset diversion to the detriment of creditors and depositors. The Bank of Russia has recurrently submitted to law enforcement agencies information about the transactions conducted by the bank bearing signs of a criminal offence.
The Bank of Russia also cancelled TROIKA-D BANK’s professional securities market participant licence.
The Bank of Russia appointed a provisional administration3 to TROIKA-D BANK4 for the period until the appointment of a receiver5 or a liquidator6. In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: TROIKA-D BANK is a participant in the deposit insurance system, therefore depositors7 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 (https://www.asv.org.ru/) in the Deposit Insurance / Insurance Events section.
1 According to the financial statements as of 1 April 2019.
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 Article 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-862, dated 17 April 2019.
4 The bank acted as an investor under the Plan for the State Corporation Deposit Insurance Agency to participate in bankruptcy prevention measures for Joint-stock Company Volga-Oka Commercial Bank, JSC VOCBANK (Registration No. 312, Nizhny Novgorod).
5 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
6 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
7 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’.