Ivanovo joint stock bank

2019: Revocation of license

The Bank of Russia the order of  April 5, 2019 revoked  a license for banking operations from  Joint-stock company IVANOVO commercial bank. On  the value of assets the credit institution took the 294th place in  a banking system of the Russian Federation.

Key activity of IVANOVO Bank was crediting of the companies and  individuals. At the same time  more than 70% of the loan portfolio were low-quality loans. Population borrowed funds were the main source of financing of this activity (   about 90% of all funds raised by bank fell to their share).

The IVANOVO bank allowed numerous violations of regulations of the Bank of Russia  in the field of counteraction of legalization (washing) of income gained in the criminal way and  to terrorism financing. Besides, the credit institution provided in  authorized body incomplete and  unreliable information,  including, on  the transactions which are subject to mandatory control; systematically underestimated the value  of reserves, necessary to formation,  and also overstated property value  for the purpose of improvement of financial performance and  concealment of the real financial position. Information on  the specified facts having signs of commission of penal acts will be sent by the Bank of Russia to  law enforcement agencies.

 According to the Bank of Russia adequate reflection in  financial statements of IVANOVO Bank  of the credit risks accepted by it and  property value leads to  considerable ( more than 30%) to decrease in the capital of IVANOVO Bank and, as a result, to  emergence of the bases for implementation of measures for  warning of insolvency (bankruptcy) that creates real threat to the interests of creditors and  investors.

Also the bank performed "circuit" operations on  artificial maintenance of the capital for formal observance of obligatory standards; broke the federal laws regulating banking activity  and also regulations of the Bank of Russia   in this connection the regulator  within the last 12  months repeatedly applied to  it measures  including introduced restrictions for  attraction of funds of individuals three times.

In  IVANOVO Bank the temporary administration of the Bank of Russia which will work  until appointment of the receiver or the liquidator is appointed. Powers of executive bodies of credit institution  according to  federal laws are suspended.

The IVANOVO bank is a participant of deposit insurance system therefore deposit amounts will be returned to investors   in the amount of 100% of balance, but   no more than 1.4 million rubles  in total on  one investor ( taking into account the accrued  deposit interests).

Payment of deposits is made  by the "Deposit Insurance Agency" State corporation.