On revocation of banking licence of credit institution ‘Interactive Bank’ and appointment of provisional administration

By its Order No. OD-1350, dated 26 April 2016, the Bank of Russia revoked the banking licence of the Moscow-based credit institution ’Interactive Bank’, Limited Liability Company, or ’Interactive Bank Ltd.’ (Registration No. 3378) from 26 April 2016.

The Bank of Russia took the extreme measure of banking licence revocation because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, due to the application 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.

Interactive Bank Ltd. implemented high-risk lending operations connected with the placement of funds in low-quality assets. The appropriate assessment of the risks assumed and the reliable recognition of the bank’s assets value resulted in the grounds arising for the credit institution to implement measures to prevent the bank’s insolvency (bankruptcy). Also, the credit institution was involved in dubious operations, including dubious transit operations. The management and owners of the bank failed to take effective measures to normalise its activities.

By its Order No. OD-1351, dated 26 April 2016, the Bank of Russia has appointed a provisional administration to Interactive Bank Ltd. 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 compliance with federal laws the powers of the credit institution’s executive bodies have been suspended.

Interactive Bank Ltd. 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 1.4 million per depositor.

According to the financial statements, as of 1 April 2016, Interactive Bank Ltd. ranked 457th by assets in the Russian banking system.

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26.04.2016 00.00.00