On results of inspection of financial standing of JSCB Legion (JSC) held by provisional administration

The provisional administration to manage JSCB Legion (JSC) appointed by Bank of Russia Order No. OD-1892, dated 7 July 2017, following the revocation of its banking licence, has established facts of underestimated credit exposure on outstanding loans issued to the bank’s borrowers — individuals and legal entities — to the total amount exceeding 6 billion rubles.

The provisional administration has also revealed operations which bear signs of diverting assets through lending to borrowers with dubious creditworthiness and not engaged in real business activity, as well as through transfer of claims on household and corporate loans.

The provisional administration estimates the value of JSCB Legion (JSC) assets to be no more than 4.5 billion rubles, whereas its liabilities to creditors amount to 14 billion rubles, including 11.9 billion rubles to individuals.

On 8 September 2017, the Arbitration Court of the city of Moscow recognised the bank as insolvent (bankrupt). The State Corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on financial transactions bearing the evidence of the criminal offence conducted by the former management and owners of JSCB Legion (JSC) to the Prosecutor General’s Office of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and the Investigative Committee of the Russian Federation for consideration and procedural decision making.

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