Central Bank of Russia has revoked the banking license of Interprombank (Moscow). The delicensed credit institution ranked 151st in the Russian banking system in terms of asset size, the regulator informed.
The Bank of Russia also cancelled Interprombank's professional securities market participant license.
Bad loans represented the major part of the loan portfolio of Interprombank. The decline in the quality of the loan portfolio and the bank's involvement in a number of legal proceedings caused substantial financial losses, including due to the need to create significant loan loss provisions, the Central Bank emphasizes.
Faced with the deterioration of its loan portfolio quality, Interprombank conducted 'scheme' transactions with non-core assets to disguise the actual gravity of risks and overstate the size of its capital.
Over the course of 2020, the bank's liquid assets declined to the critical level amid a growing number of third parties' (including credit institutions') legal claims against the bank, which evidenced that the bank would not be able to comply with its obligations in the short term, the regulator notes.
The above-mentioned trends were accompanied by an outflow of client funds and a deterioration of the current liquidity ratio. All of these risks and their growth led to the fact that Interprombank's activities were inefficient. In 2020, the bank suffered losses in the amount of 3.9 billion rubles, or 57% of its capital.
The powers of the credit institution's executive bodies have been suspended. The Bank of Russia appointed a provisional administration to Interprombank for the period until the appointment of a receiver or a liquidator. Interprombank is a participant of Russia's deposit insurance system.
