International Commercial Bank (ICD)

History

2020: License Revocation

On November 13, 2020, the Central Bank of the Russian Federation announced the revocation of the license from the International Commercial Bank (ICD), which ranked 299th in the Russian banking system. A temporary administration has been appointed in the credit institution, which will be valid until the appointment of a bankruptcy trustee or liquidator. The powers of the executive bodies of the credit institution have been suspended.

According to the regulator, the ICD has repeatedly violated federal laws governing banking activities, as well as Bank of Russia regulations.

Central Bank revoked the license of the International Commercial Bank

More than 70% of the loan portfolio of the International Commercial Bank was low-quality loans, which were repeatedly restructured in order to conceal the real level of overdue debt, the Bank of Russia said in a statement.

In addition, according to the regulator, the ICD underestimated the amount of reserves necessary for the formation, and also overestimated the value of property in order to improve financial indicators and conceal its real financial situation, while the instructions of the Central Bank were not implemented. In this regard, the Central Bank has repeatedly applied measures to the ICD over the past 12 months, including restrictions on attracting funds from individuals.

The Central Bank noted that the International Commercial Bank is a member of the deposit insurance system, so the deposit amounts will be returned to depositors in the amount of 100% of the balance of funds, but not more than 1.4 million rubles in total per depositor (including accrued interest on deposits), with the exception of cases determined by Chapter 2.1 of the Federal Law "On Insurance of Deposits in Banks of the Russian Federation."

The regulator also canceled the ICD license for professional activities in the securities market.^[1]

Notes