The Bank of Russia took a decision to revoke effective April 5, 2012 a banking license held by International Investment Bank (Moscow).
For the record, on March 1, 2012 the Central Bank of Russia posted a press release on its web site that it had sent a request to IIB to discontinue deposit operations.
As the regulator’s PR department reported, the decision to apply the measure of last resort, i.e. to revoke a banking license, was taken as the lending institutions failed to comply with the federal laws that regulate banking activities and CBR’s statutory acts, its failure to meet monetary claims of creditors, and also taking into account numerous applications during the year of the measures that are stipulated in the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”.
IIB pursued a high-risk credit policy and failed to fulfill requirements contained in the regulator’s orders. Due to the loss of liquidity the lender failed to timely fulfill its obligations to creditors, and also to individuals with regard to money transfers. The bank’s management and owners took no measures to restore the bank’s financial standing. Under the circumstances the Bank of Russia was required to revoke the lending institution’s banking license.
In accordance with CBR’s order, a temporary administration commenced work at the bank until a bankruptcy receiver or a liquidator is appointed. The powers and authority of the bank’s executive bodies were suspended.
International Investment Bank (OJSC) is a member of the national deposit insurance system, and the revocation of a banking license is an inured event as provided for in the Federal Law “On Insuring Private Deposits Held with Banks of the Russian Federation” with regard to the bank’s obligations under retail deposits in the manner prescribed by law.
