CNB initiates proceedings to revoke IPBs licence

On Sunday, the Czech National Bank started administrative proceedings to revoke the banking licence of Investiční a Poątovní banka a.s. (IPB). Based on information from the conservator regarding his discussions with the auditors, the central bank has concluded that IPB's capital adequacy has declined to a level lower than one third of the set ratio.

The conservator has informed the central bank about the opinion of the auditors Ernst & Young that the prepared annual accounts do not give a true and fair view of IBP's performance. The auditors justifiably believe that the increase in provisioning needed would considerably exceed IBP's capital and that IPB cannot exist without the CNB's help.

Milan Tománek
CNB spokesman