Banking licence of GARANT-INVEST BANK revoked
By its Order No. OD-2303, dated 26 December 2024, the Bank of Russia revoked the banking licence of Moscow-based GARANT-INVEST BANK Joint Stock (Registration No. 2576). The credit institution ranked 168th by assets in the Russian banking system.1
The Bank of Russia made this decision in accordance with Clause 6 of Part 1 of Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that GARANT-INVEST BANK:
- violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied measures against it over the past 12 months, including restrictions on household deposit-taking.3
In the course of the audit of cash carried out on 25 December 2024 as part of the Bank of Russia’s unscheduled inspection, the regulator revealed a large cash shortage in GARANT-INVEST BANK’s vault. If GARANT-INVEST BANK forms required loss provisions for the actually missing assets, it will lose its equity (capital). Accordingly, GARANT-INVEST BANK’s activity involves a real threat to creditors’ and depositors’ interests.
The Bank of Russia will forward the information on transactions conducted by GARANT-INVEST BANK that had signs of crime to the law enforcement authorities.
The Bank of Russia also cancelled GARANT-INVEST BANK’s professional securities market participant licence.
By its Order No. OD-2304, dated 26 December 2024, the Bank of Russia appointed State Corporation Deposit Insurance Agency (DIA.RF) as a provisional administrator to manage GARANT-INVEST BANK. The provisional administrator will exercise its functions until a receiver4 or a liquidator5 is appointed. In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: GARANT-INVEST BANK is a participant in the deposit insurance system; therefore, its depositors will be compensated for their deposits in the amount of 100% of the balance of funds, but no more than a total of ₽1.4 million per depositor (including interest accrued), taking into account the conditions stipulated by Chapter 2.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’.
Deposits are to be repaid by DIA.RF. Depositors may obtain detailed information regarding the repayment procedure 24/7 at DIA.RF’s hotline
1 According to the financial statements as of 1 December 2024.
2 The Bank of Russia made this decision due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, and given the repeated application within a year of the measures stipulated by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, as well as taking into account the existence of a real threat to the interests of GARANT-INVEST BANK’s creditors and depositors.
3 Depositor – a citizen of the Russian Federation, foreign citizen or person without citizenship, including those engaged in entrepreneurial activity, lawyers, notaries and other individuals who opened bank accounts (deposits) to carry out professional activities, or a legal entity specified in Article 5.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’ which concluded a deposit/account agreement with a bank, or any of the above mentioned persons on behalf of whom the deposit was made and/or who is the holder of a savings certificate, or an owner of a special account (special deposit) intended to form and use the fund of capital repairs of common property in an apartment house opened in accordance with the requirements of the Housing Code of the Russian Federation.
4 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
5 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
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