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On revocation of banking licence from credit institution Ivy Bank and appointment of provisional administration

29 May 2017
Press release

By its Order No. OD-1394, dated 29.05.2017, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank Ivy Bank (Joint-stock Company), Registration No. 2055, further referred to as the credit institution. According to the financial statements, as of 01.05.2017, the credit institution ranked 432rd by assets in the Russian banking system.

The credit institution’s business model was of a strongly captive nature and to a great extent focused on high-risk lending to borrowers who were directly or indirectly related to the credit institution’s ultimate beneficiary owners. The credit institution-conducted transactions have led to the emergence of grounds in its operations for regulatory measures to be taken to prevent its failure (bankruptcy); these transactions have put its creditors’ and depositors’ interests under threat.

The regulator has repeatedly applied supervisory measures to the credit institution, including restrictions and prohibition on household deposit taking.

The regulator deems the steps the credit institution’s management and owners have been making to normalise business operations as ineffective and insufficient. Under the circumstances, the Bank of Russia has made the decision to withdraw Ivy Bank (JSC) from the banking services market.

The Bank of Russia takes this extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, due to repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, considering a real threat to the creditors’ and depositors’ interests.

By its Order No. OD-1395, dated 29.05.2017, the Bank of Russia appointed a provisional administration to Ivy Bank for the period until the appointment of a receiver pursuant to the Federal Law ‘On 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 are suspended.

Ivy Bank JSC is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No. 177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by law. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per one depositor.


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