Press Service

The Central Bank of the Russian Federation (Bank of Russia)

Press Service

12 Neglinnaya Street, Moscow, 107016 Russia;

Revocation of banking licence from International Bank of St. Petersburg and appointment of provisional administration

By its Order No. OD-2851, dated 31.10.2018, the Bank of Russia revoked the banking licence from the St. Petersburg-based credit institution International Bank of St. Petersburg (Joint-stock company) or Bank IBSP (JSC) (Registration No. 197) from 31.10.2018.

Bank IBSP faced problems in its activity due to the implementation of a high-risk business model which led to a large amount of non-performing assets in its balance sheet, including financial derivatives and unconfirmed (false) claims on non-resident companies. The bank lost its capital after it created provisions adequate to the risks assumed as required by the supervisory authority.

The Bank of Russia repeatedly (2 times over the last 12 months) applied supervisory measures against Bank IBSP, including the imposition of restriction on household deposit taking.

The credit institution’s management and owners failed to take any effective measures to bring its activities back to normal.

The state corporation Deposit Insurance Agency, entrusted in accordance with a Bank of Russia order with the duties of a provisional administration to manage the credit institution, conducted an assessment of the bank’s financial position, which established a substantial gap between its assets and liabilities in the amount of over 15.5 billion rubles.

Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution Bank IBSP in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.

The Bank of Russia took such an extreme measure because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, equity capital adequacy ratios below two per cent, decrease in the bank’s equity capital below the minimum value of the authorised capital established as of the date of the state registration of the credit institution, and given the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Following banking licence revocation, Bank IBSP’s professional securities market participant licence was also cancelled.

Due to banking licence revocation, the functions of the provisional administration to manage Bank IBSP, entrusted with the state corporation Deposit Insurance Agency in accordance with Bank of Russia Order No. ОD-2668, dated 15.10.2018, are terminated pursuant to Bank of Russia Order No. ОD-2852, dated 31.10.2018.

By its Order No. OD-2853, dated 31.10.2018, the Bank of Russia has appointed a provisional administration to Bank IBSP for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy)’ or a liquidator under Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.

Bank IBSP is a member of the deposit insurance system. An insured event shall be deemed as occurring starting from the date of the moratorium on meeting the creditor claims of the credit institution (15.10.2018), which shall also be the date used for the calculation of insurance indemnity for the bank’s liabilities in foreign currency.

The revocation of the banking licence, put in force before the moratorium on meeting creditor claims expires, shall not cancel its legal implications, including the obligation of the state corporation Deposit Insurance Agency to pay out insurance indemnity.

The state corporation Deposit Insurance Agency will continue to pay out insurance indemnity for deposits (deposit accounts) with Bank IBSP in accordance with Clause 2 of Part 1 of Article 8 of the Federal Law ‘On the Insurance of Household Deposits with Russian Banks’ — imposition by the Bank of Russia of the moratorium on meeting creditors’ claims until the completion of bankruptcy proceedings.

Information on the agent banks authorised to pay an insurance indemnity can be found on the official website of the state corporation Deposit Insurance Agency (

According to its financial statements, as of 01.10.2018, the credit institution ranked 116th by assets in the Russian banking system.

31 October 2018

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