The grounds on which the Bank of Russia may revoke the license of the bank to carry out their banking activities are regulated by Article 20 of the Federal Law? On banks and banking activity ?.
Bank of Russia regulations set procedure for revocation of licenses for banking operations.
The reason that the Bank of Russia has the right to revoke the license of the bank are:
Violation of Federal laws, regulations, and the Bank of Russia regulations.
Failure to provide information.
Submission of incomplete or inaccurate information.
This formulation may only give Auditingcompany during mandatory inspections. Significant are the factors that influence the views of users of financial statements. Users can be investors, shareholders, investors, creditors. For example, the bank indicates the monthly yield of 5% growth in the financial statements. In this case, the bank said investors may be interested in an investment object, invest and wait for profits. In fact, however, the bank has a monthly loss, and hides this by providing false financial statements. And the cost of capital by investors was used irrationally and irrevocably lost. Possible final activity of this bank? bankruptcy and the impossibility of return on investment. And as a result - the lack of confidence of investors not only to this bank, but also to the entire banking system of the state.
Committing acts that constitute a real threat to the interests of depositors and creditors.
These actions, in particular, can beholding commercial bank credit policy is too risky, and not the creation of adequate reserves, taking into account possible losses. It is no secret that the interest is not returned loans may reach 30%. And the irrational bank's asset management, the illiterate credit policy, the shortage of funds may be for the repayment of bank liabilities to depositors, shareholders, creditors. As a result, loss-making activities and bankruptcy.
Therefore, strict control on the part of the Bank of RussiaIt manifested in activities aimed primarily at stabilizing the state of the banking system and the investment attractiveness of the state as a whole.
If the above issues are found, the supervisory authorities of the Bank of Russia will be obliged to revoke the license of the bank.