Central Bank revoked the license from Interprombank

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The Central Bank of the Russian Federation revoked the license from Interprombank. The regulator had 4 complaints against the financial institution.

Firstly, the bank underestimated the amount of reserves required for the formation of reserves for possible losses on loan and equivalent debts. In addition, he made deals with non-core assets in order to artificially improve his financial performance.

Secondly, the bank violated federal laws regulating banking activities, as well as regulations of the Central Bank. Because of this, the regulator introduced restrictions on attracting depositors’ funds twice in 12 months.

Thirdly, the Central Bank revealed that most of the organization’s loan portfolio consisted of problem loans.

Fourth, throughout 2020, the bank reduced its liquidity to a critical level amid the growth of lawsuits against the bank in significant volumes from third parties, including credit institutions.