CENTRAL BANK OF RUSSIA REVOKED THE LICENSE OF KS BANK

The Central Bank reported that the KS’s license was canceled due to the underestimation of the necessary reserves for potential losses. It is noted that the credit institution did this in order to hide its real financial position and artificially improve its performance.

KS Bank was also accused of violation of federal laws, as well as regulations governing banking activities.

Due to all these, the Central Bank has repeatedly tried to apply measures to the bank over the past year, but this did not bring results. Among other things, the regulator introduced restrictions on attracting funds from depositors 3 times.

The Central Bank believes that the main activity of the bank was aimed at satisfying the interests of the owners of the organization, as well as companies associated with them. More than 50% of these companies' debts were bad loans.

The loan portfolio of KS bank was not of high quality, however, the financial institution artificially maintained the amount of capital so that all norms were formally observed.

Now the Central Bank has appointed a temporary administration to the KS bank - later it will be replaced by a bankruptcy trustee or liquidator.

The financial institution is a member of the deposit insurance system, payments to depositors will begin no later than August 20 - the money will be returned in full, but not more than 1.4 million rubles per person. Prior to the revocation of the KS’s license, the bank was ranked 176th in the rating of Russian Banks.