The PR department of the Bank of Russia said that the Central Bank of the Russian Federation cancelled the banking license held by International Industrial Bank (Moscow).
CBR emphasized that the lender’s license was revoked due to the non-fulfillment by the lending institution of “federal laws regulating banking activities and CBR statutory acts, instances when the bank submitted unreliable financials and its inability to meet monetary claims of creditors”.
Due to the loss of liquidity International Industrial Bank failed to timely fulfill its obligations to creditors. Furthermore, the lending institution pursued a high-risk lending policy and did not form any adequate allowances against possible loan losses. When doing so, the bank forwarded misstated financials to the Bank of Russia and did not fulfill demands set forth in the supervisory body’s executive orders," the Bank of Russia said in a press release.
The temporary administration team commenced operations at the bank until a bankruptcy manager or a liquidator is appointed. The powers and authority of the bank’s executive bodies were suspended. The temporary administration team will be headed up by Galina Aleksentseva, deputy director of the department in charge of to-be-liquidated lending institutions (the Banking Supervision Division at the Moscow Chief Territorial Directorate of the Bank of Russia).
