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Russian regulator cancels 3 banking licenses


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Russian regulator cancels 3 banking licenses

The Central Bank of the Russian Federation revoked the banking licenses of Ivy Bank (JSC) and Petrozavodsk-based International Commercial Bank for Development of Investment and Technology (Centre) and placed the lenders into provisional administration until the appointment of a receiver or a liquidator.

The regulator said Ivy Bank pursued a business model that was largely focused on lending to parties affiliated with the beneficiary owners of the lender and that transactions conducted by the bank posed a threat to the interests of its creditors and deposit holders, prompting regulatory measures to prevent its bankruptcy.

Yet, steps taken by the bank's managers and owners were ineffective and insufficient to improve its financial position, so the regulator moved to cancel Ivy Bank's license.

Meanwhile, International Commercial Bank for Development of Investment and Technology (Centre), or RITZ Bank, was not able to honor its obligations to creditors and stopped servicing its customers, the regulator said, adding that the lender's managers and owners were involved in withdrawal of assets from it, which resulted in the full loss of its capital.

The Russian central bank also revoked the license of Moscow-based Ironbank at its own request and will appoint a liquidation commission for the lender. The bank has sufficient resources to satisfy financial claims of its creditors, the regulator said.