A license for banking operations is issued for a certain period of time?

The decision on the state registration of any financial organization is made by the Central Bank of Russia. As soon as the information on the bank falls into a single register, it must inform about all the changes that are taking place. The license for banking operations 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 certain content, form and duration.

If we take the above definition as a basic one and supplement it with excerpts from Chapter 2 of the Law on Banks, we will obtain a definition of a license to conduct banking operations.

A license to conduct banking operations is a special permission from the Bank of Russia to carry out banking activities in the form of an official document giving the financial institution the right to carry out the banking operations indicated therein without any time limit.

Types of licenses

For newly-established banking organizations, the following types of licenses are available:

• A license to conduct banking operations with funds in rubles (without the right to attract funds from individuals);
• To execute operations with funds in the ruble equivalent and foreign currency (without the possibility of attracting funds from individuals);
• To attract cash deposits and placement of precious metals (this license is valid separately from the license for the execution of operations with money);
• On attraction of money resources of natural persons in deposits (in national currency);
• On attraction of money resources of physical persons in deposits in national and foreign currency;
• For execution of operations with funds in the ruble equivalent or with funds in foreign and national currency for settlement non-banking financial organizations;
• To execute operations with funds in the ruble equivalent or with funds in national and foreign currency for settlement non-bank financial institutions that conduct deposit and lending operations.

The license for banking operations is issued for:

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

A separate type of license is considered general.

General License

Such a license to conduct banking operations is issued to those financial institutions that have received permission to perform all operations and fulfill the requirements of the Federal Law on the amount of their own funds.

At the same time, a license to place 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 can create branches and representative offices in foreign countries with the permission of the Central Bank of the Russian Federation. Also, such banks may, in accordance with the requirements of the Central Bank of Russia, establish subsidiaries.

The general license for banking operations is issued for a period of unlimited number of years.

Terms of issue

The document can be issued only after the state registration and in the manner established by the legislation and those normative acts adopted by the Central Bank. The license for banking operations contains an indication of the currency with which the bank will operate, 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 commission 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. Such a list of the Bank of Russia should publish in the Bulletin of the Central Bank of the Russian Federation at least once a year. At the same time, all the appearing changes and additions must be entered in the register not later than a month from the moment of their adoption.

The license must contain information about the banking operations for which the financial institution is entitled, as well as information on the currency with which the bank has the right to operate. The license for banking operations is issued for an indefinite number of years. In other words, it is unlimited.

Work without a license

Based on the fact that the license for the implementation of bank guarantees issued by the central bank of Russia, the conduct of activities without this document will entail fines and penalties in the amount of all profits that the organization 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 a twofold amount from the amount received in the course of the work.

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

The Central Bank has the right to make a claim for the liquidation of a legal entity operating without a license and carrying out financial transactions. Such organizations bear administrative, civil, legal, and also criminal responsibility. At the same time, the period for which a banking license is issued is reduced until the license is revoked.

Obtaining a license

In order to obtain a license, a financial institution must collect and submit the following documents:

1. Application for state registration. In this application, the full requisites of the financial organization, as well as the executive body, through which you can communicate with the bank, should be indicated.
2. Memorandum of association. This document is provided if federal legislation so requires. You need to provide either an original or a certified copy.
3. Articles of association. An original or a certified copy is provided.
4. Business plan. The concept of work is developed and approved at the meeting of the founders. The document contains information on candidacies for the posts of the head and chief accountant, as well as on the approval of the charter. The drafting of a business plan is oriented towards the CBR standards.
5. Confirming document on payment of state duty, as well as license fee.
6. Documents on state registration of founders. This includes: an audit report on the truthfulness of the financial statements provided, confirmation by the tax inspectorate of the fulfillment of obligations to the federal and local budget for 3 years.
7. Confirming documents on the origin of statutory funds.
8. Questionnaires of candidates for the position of the head, chief accountant, deputies and similar posts to the branches of the organization. These questionnaires should contain all the necessary information: full requisites, the status of education (legal or economic), management experience in a similar field, and criminal record. The questionnaires must be written with your own hand.

The Bank of Russia receives a written receipt upon receipt of all documents.

Decision making by the Bank of Russia

The decision on state registration and licensing is made within half a year from the date of the submission of all necessary documents.

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

Based on the decision and the submitted documents, the authorized body within five days makes the organization in the unified state register of legal entities. The next day, this information should be provided by the CBR. And he, in turn, within 3 days informs this information to the founders of the organization.

Further, the founders are obliged within a month to pay the announced authorized capital in 100% of the amount. After that, the financial organization receives a document confirming the fact of state registration. Immediately after the state registration of the organization issued a license to conduct banking operations. For how long is it issued? The Central Bank of Russia does not limit the terms under the license.

Obligations of the Bank of Russia upon withdrawal

The Bank of Russia withdraws the license if:

• The amount of the authorized capital is reduced to 2%;
• The amount of the own funds of the financial organization is below the minimum threshold of the authorized capital, accepted by the bank of the Russian Federation on the date of state registration of the organization;
• The financial organization ignores the requirement of the Central Bank to normalize the amount of capital and equity;
• A financial institution can not satisfy the demands of creditors and fulfill its obligations under compulsory payments.

Reason for recall

A license to conduct banking operations may be revoked if:

1. There were reasons to assume that the information provided, based on which the document was issued, is invalid.
2. The commencement of operations is delayed more than one day.
3. The facts of data unreliability are established.
4. Monthly reporting is delayed by more than 15 days.
5. The financial organization carries out activities not provided for by the license.
6. During the year the financial organization violates the rules prescribed by federal legislation and regulatory acts of the Central Bank.
7. There was a repeated failure by the guilty parties to establish requirements for collection of funds by the court.
8. There is a petition from the temporary administration created on the basis of the Federal Law "On the Insolvency of Financial Organizations".
9. The Central Bank repeatedly failed to provide updated information that is necessary for entering the state register.

Other grounds on which the license was revoked are considered invalid. The decision of the Bank of Russia on revocation 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

The license to conduct banking operations is issued by the Central Bank of the Russian Federation, and it also responds. After the withdrawal, the financial organization must be liquidated. Also, the financial institution after the recall:

• The deadline for fulfilling obligations is reached;
• The accrual of penalties for obligations is terminated;
• The work of documents on property searches (except for executive documents issued on the basis of collection of debts on wages, payment of fees, alimony and other payments) issued on the basis of court sessions and entered into force until the license is revoked is suspended;
• It prohibits the activities of a financial institution in the form of concluding transactions or fulfilling obligations (except for transactions relating to municipal and operational payments, as well as payments of benefits) to the appointment of a liquidation commission or bankruptcy administrator.

Return of license

A financial institution that has withdrawn a license from the Central Bank of the Russian Federation can regain the status of an organization that carries out banking operations. For this, the license is disputed in court. And if the court session makes a positive decision, then the CBR will return the organization to a license. And it should be noted that in judicial practice such issues are resolved quite often, and in favor of banks.

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

Term of the license

A license for banking operations is issued for a period unlimited in time. A financial organization can carry out all types of activities specified in the license until it is withdrawn by the Central Bank of the Russian Federation or ceases to function.

In the license form, you can find only one date - the date of issuance of its financial organization. Each year, the Central Bank conducts inspections, which are aimed at the fulfillment of the types of activities prescribed in the license.