A license to carry out banking operations is issued for how long?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The decision on the state registration of any financial organization is made by the Central Bank of Russia. As soon as information about the bank enters the unified register, it is obliged to inform about all the changes taking place. A banking license is also issued by the Central Bank of the Russian Federation.

Definition

First, let's clarify what is included in the concept of "license". A license is a special permit issued by authorized bodies in the form of an official document with a specific content, form and validity period.

If we take the above definition as a basic one and supplement it with excerpts from chapter 2 of the Banking Law, we get the definition of a banking license.

A license to carry out banking operations is a special permission from the Bank of the Russian Federation to carry out banking activities in the form of an official document giving the right to financialorganizations to perform the banking operations specified in it without time limits.

Types of licenses

For newly minted banking organizations, such types of licenses are available as:

• license for banking operations with funds in rubles (without the right to attract deposits from individuals);
• to execute operations with funds in ruble equivalent and foreign currency (without the ability to attract funds from individuals into deposits);
• to attract cash deposits and placement of precious metals (this license is valid separately from the license to perform transactions with money);
• to attract funds from individuals in deposits (in national currency);
• to attract funds from individuals in deposits in national and foreign currencies;
• to execute operations with funds in ruble equivalent or with funds in foreign and national currency for settlement non-banking financial institutions;
• to execute operations with funds in ruble equivalent or with funds in national and foreign currencies for settlement non-banking financial institutions that conduct deposit and credit operations.

Banking license is issued for:

• involvement in deposits and placement of precious metals;
• involvement in deposits of individuals in the national currency;
• involvement in deposits of individuals in national and foreign currencies.

A separate type of license is considered a general one.

General License

This banking license is issued to those financial institutions that have received permission to execute all transactions and comply with the requirements of the Federal Law on the amount of their own funds.

At the same time, a license for the placement of precious metals is not required to obtain a general license. An organization that has such a license and funds in the amount of 180 million rubles or more can create branches and representative offices in foreign countries with the permission of the Central Bank of the Russian Federation. Also, such banks can, in accordance with the requirements of the Central Bank of the Russian Federation, create subsidiaries.

General banking license issued for unlimited years.

Issue conditions

A document can be issued only after state registration and in the manner prescribed by law and those regulations adopted by the Central Bank. The license for banking operations contains an indication of what currency the bank will work with, whether funds will be attracted to deposits, as well as the possibility of placing precious metals.

For the issue of issuing a license to be considered, a fee of 1% of the authorized capital of the bank is charged. This money goes to the treasury of the federal budget.

The issued license must be included in the list of issued licenses. The Bank of the Russian Federation should publish such a list inBulletin of the Central Bank of the Russian Federation at least once a year. In this case, all appearing changes and additions must be made to the register no later than a month from the date of their adoption.

The license must contain information about the banking operations to which the given financial institution is en titled, as well as information about the currency with which the bank is en titled to work. A banking license is issued for an indefinite number of years. In other words, it is indefinite.

Work without a license

Based on the fact that licenses for the implementation of bank guarantees are issued by the Central Bank of Russia, doing business without this document will entail fines and pen alties in the amount of all profits that the organization has received during its work. In addition, a legal entity operating without a license will be required to pay a fine to the federal budget in the amount of two times the amount received in the course of work.

Pen alties and fines are made through the court at the suit of the prosecutor or the Central Bank.

The Central Bank has the right to file a lawsuit for the liquidation of a legal entity operating without a license and carrying out financial transactions. Such organizations bear administrative, civil, legal and criminal liability. At the same time, the term for which a license for banking operations is issued is reduced until the moment the license is revoked.

Obtaining a license

To obtain a license, a financial institution must collect and submit the followingdocuments:

1. Application for state registration. This application must contain the full details of the financial institution, as well as the executive body through which you can contact the bank.
2. Memorandum. This document is provided when required by federal law. You must provide either the original or a certified copy.
3. Charter of the organization. Original or certified copy provided.
4. Business plan. The concept of work is developed and approved at the meeting of the founders. The document contains information on candidates for the positions of the head and chief accountant, as well as on the approval of the charter. Drawing up a business plan is focused on the standards of the Central Bank of the Russian Federation.
5. Confirming document confirming payment of state duty and license fee.
6. Documents on state registration of founders. This includes: an audit report on the veracity of the financial statements provided, confirmation by the tax office on the fulfillment of obligations to the federal and local budgets for 3 years.
7. Supporting documents on the origin of authorized funds.
8. Questionnaires of candidates for the position of head, chief accountant, deputies and similar positions in the branches of the organization. These questionnaires must contain all the necessary information: full details, education status (legal or economic), management experience in a similar field, criminal record. Questionnaires must be written by hand.

The Bank of the Russian Federation upon receipt of all documents issues a written receipt.

Acceptancedecisions by the Bank of the Russian Federation

The decision on state registration and issuance of a license is made within six months after the date of submission of all necessary documents.

After the bank makes a decision on the state registration of a financial organization, it sends all information about it to the authorized body, which will enter the information into a single list of legal entities.

Based on the decision and the submitted documents, the authorized body, within five days, enters the organization into the unified state register of legal entities. The next day, this information must be provided by the Central Bank of the Russian Federation. And he, in turn, reports this information to the founders of the organization within 3 days.

Further, the founders are required to pay 100% of the announced authorized capital within a month. After that, the financial institution receives a document confirming the fact of state registration. Immediately after the state registration of the organization, a license for banking operations is issued. For what period is it issued? The Central Bank of the Russian Federation does not limit the terms of the license.

Obligations of the Bank of the Russian Federation upon recall

The Bank of the Russian Federation revokes the license if:

• the value of the authorized capital is reduced to 2%;
• the amount of own funds of a financial organization is below the minimum threshold of the authorized capital adopted by the Bank of the Russian Federation on the date of state registration of the organization;
• financial organization ignores the requirement of the Central Bank to bring the amount of capital and own funds back to normal;
• financial institution is notcan meet the requirements of creditors and fulfill its obligations on mandatory payments.

Grounds for recall

A banking license may be revoked if:

1. There are reasons to believe that the submitted information, on the basis of which the document was issued, is invalid.
2. The start of operations has been delayed by more than one day.
3. Facts of inaccurate data have been established.
4. Monthly reporting over 15 days late.
5. Financial organization carries out activities not covered by the license.
6. During the year, a financial institution violates the rules prescribed by federal law and regulations of the Central Bank.
7. Repeated non-fulfillment by the guilty of the requirements for the recovery of funds established by the court was noted.
8. There is a petition from the interim administration, established on the basis of the Federal Law "On the insolvency of financial organizations."
9. The Central Bank repeatedly did not provide updated information that is necessary for entering into the state register.

Other grounds on which the license was revoked are considered invalid. The decision of the Bank of the Russian Federation to withdraw comes into force after the adoption of the act and can be appealed within a month from the date of its publication in the Bulletin.

What happens to the bank after the recall

A license to carry out banking operations is issued by the Central Bank of the Russian Federation, and it is also revoked by it. Afterrecall, the financial institution must be liquidated. Also at the financial institution after the recall:

• commitment deadline;
• stop accruing pen alties on obligations;
• the work of documents on property surveys (except for executive documents issued on the basis of the collection of wage arrears, payment of remuneration, alimony and other payments), issued on the basis of court hearings and entered into force until the moment of license revocation, is suspended;
• It is prohibited to operate a financial organization in the form of making transactions or fulfilling obligations (except for transactions regarding utility and maintenance payments, as well as payment of benefits) until the appointment of a liquidation commission or a bankruptcy trustee.

Return license

A financial institution whose license was revoked by the Central Bank of the Russian Federation can regain the status of an organization that carries out banking operations. To do this, the revocation of the license is challenged in court. And if the court session makes a positive decision, the Central Bank of the Russian Federation will return the license to the organization. And it is worth noting that in judicial practice such issues are resolved quite often, and in favor of banks.

In addition, the Central Bank may return the license on its own initiative. This happens after the financial institution corrects all violations that were found during the inspections.

License term

License forbanking transactions are issued for a period of unlimited time. A financial institution may carry out all types of activities specified in the license until such time as it is revoked by the Central Bank of the Russian Federation or it itself stops its work.

On the license form, you can find only one date - the date of issue of its financial institution. Every year, the Central Bank conducts inspections that are aimed at carrying out the types of activities prescribed in the license.